On Friday HSBC lowered its gold price forecasts:
- For 2013 to $1,542/ounce from $1,700
- And for 2014 to $1,600/ounce from $1,720
Friday’s weaker than expected US GDP figure (Q1 at 2.5% vs. expectations for a 3% figure) should be a slight net positive for gold; much of the discontent with holding gold has centred on perceptions that the US (and global) economy was bouncing back, Friday’s GDP result casts some doubt on that.
In the shorter-term, expect resistance in the $1490 – $1495.50 band. More on gold’s technicals at Kyle’s post here.
Source: Bloomberg