Monday, April 16, 2012

GFMS sees gold costs exceeding US$2,000/oz by 2013

Gold prices are most likely to pass via a short-term lull prior to regaining strength towards the year’s finish, with an escalating likelihood of rising above US$2,000/oz in early 2013, Thomson Reuters GFMS stated in its Gold Survey.

“The low US$1,600s came as small surprise and it’s quite achievable we’ll see a push even lower, perhaps below US$1,550 within the next month or two,” said GFMS head of metals analytics Philip Klapwijk. Stone Crusher

The short-term caution can be a outcome of the eurozone crisis appearing to have subsided and lower expectations of additional quantitative easing within the US.

GFMS stated it remained confident in regards to the mid-term buoyancy of rates.

“A push on towards US$2,000 is unquestionably on the cards prior to the year is out, although a clear breach of that mark is arguably a more most likely event for the very first half of subsequent year,” Mr Klapwijk said.

Gold rates have grown an typical 17% per year given that 2003, in accordance with on-line resource, and over the initial 3 months of this year have ranged among US$1,785/oz -US$1,618/oz. Gold rose to a record US$1,920/oz last September.

GFMS stated its predictions for a resurgent cost were based on the assumption that worries about European sovereign debt would resume, with Spain expected to be the primary concern, and that a recovery inside the US would start to falter over the following handful of months, requiring the Federal Reserve to take additional monetary policy measures. Each events would drive investors back into gold as a secure haven.Stone Crusher Machine

The report accorded with analysis inside the CPM Group’s 2012 Gold Yearbook, which argued that investment in gold would continue via the year, but would show escalating cost sensitivity.

“Investors are expected to add to their holdings on value declines,” said CPM analysts. “Net additions to gold holdings more than the course of 2012 are expected to be flat from levels noticed in 2011.”

Earlier predictions have already been much more bullish for 2012 gold rates, with investment bank Goldman Sachs previously forecasting an typical cost of US$1,810/oz for the year. Head from the Globe Gold Council Ian Telfer, who is also chairman of producer Goldcorp Inc, mentioned he expected rates to hit US$2,500/oz this year and US$5,000/oz by 2015.

GFMS mentioned it foresaw an on-going low degree of hedging among gold producers, soon after a 2010 trend towards de-hedging was marginally reversed last year, and that 2012 prices would continue to bring rewards for the sector.

“The mining sector is deriving clear rewards from a decade of rising prices and high absolute rates,” stated Mr Klapwijk. “This has given us a healthy pipeline of new projects coming on stream, and signifies that numerous mature operations are staying productive for longer than would otherwise have already been the case.”