Gold price forecast: Merrill Lynch cuts 2013 gold forecast
Merrill Lynch lowered its gold price forecasts for 2013 , citing weak fundamentals and lack of investment buying.
The bank now expects gold prices to average $1,478 an ounce in 2013, 12 per cent below its previous forecast of $1,680.
BofA analyst Michael Widmer said in a note to clients. “The business cycle puts gold in an uncomfortable position, Higher growth, rising in nominal yields and subdued inflationary pressure have all limited investor buying.”
Even so, the B. of A. Merrill Lynch analysts also said that while the gold bull market is “pausing,” they believe the “structural rally is not broken.”
