Gold and Silver • UBS raises gold, silver, copper forecasts
NEW YORK (Commodity Online): Zurich based investment bank UBS AG (SIX: UBSN, NYSE: UBS) lifts its 2012 average estimate for gold prices by $20 an ounce to $1,700 and its 2013 estimate to $1,900 from $1,725.
“The open-ended nature of QE … promises longevity for a higher gold trade and the quantitative easing and strength in gold also supports silver,” the Swiss bank noted.
"We also materially increase our silver price 2012/13 price forecasts (including the long-term price). Copper price estimates are raised 2 per cent/6 per cent in 2012/13. Iron ore is trimmed 5 per cent/2 per cent in 2012/13, and met-coal 5 per cent in 2012. We believe thermal coal has now largely rebalanced after widespread production cuts," they added.
For platinum, the bank boosts its 2012 average price estimate by $10 an ounce to $1,575, leaving its 2013 estimate unchanged at $1,800.
“The biggest price lift has already occurred, by a US recovery and underperforming, high-cost South Africa mines are two key supports,” UBS continued.
They lower their palladium 2012 price forecast by $15 to $655, but say eventually palladium will be supported by the U.S. economic recovery and dwindling Russian stocks.
Statistics: Posted by yoda — Fri Oct 12, 2012 10:24 am
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