MKS forecast $19.50 silver average in 2014--(low $17.50)
Posted: Thu Jan 09, 2014 12:03 pm(Interesting article for those who are waiting to "back up the truck".)
MKS Sees Gold Averaging $1,262 In 2014; Silver $19.50
By Kitco News
Thursday January 09, 2014 8:43 AM
(Kitco News) - MKS (Switzerland) SA forecast gold prices to average $1,262 an ounce in 2014, drawing support during the first half of the year due to physical demand, the Swiss trade house said Thursday.
The firm forecast silver to average $19.50 in 2014, platinum to average $1,467 and palladium to average $765.
Gold fell 28% in 2013, with a large price drop during the second quarter, in particular. That prompted strong physical demand and large volumes of gold moved from Western to Eastern nations, MKS said. The firm said it expects this trend to continue in 2014, with Chinese gold demand in part compensating for “moderate” gold imports into India.
Much of the market’s focus also is likely to be on expected tapering of U.S. quantitative easing, MKS said.
“We expect gold to strengthen in H1 on the back of physical demand, but with limited upside potential,” MKS said, listing a $1,350 upside target. The firm listed an expected low for the year of $1,120. “In Q4, gold shall weaken on the back of higher U.S. interest rates talks and signs of global growth recovery.”
Meanwhile, MKS pointed out that some 13 million ounces of silver flowed into exchange-trade funds during 2013 despite the decline in prices. However, this also means a “significant liquidation risk” if silver price action fails to convince investors to hold those positions.
“We expect silver to top at $23/oz this year and its price average to be $19.50/oz,” said MKS, which also sees a 2014 low of $17.50. “We would not be surprised to see more volatility in silver and erratic trading from time to time.”
MKS Sees Gold Averaging $1,262 In 2014; Silver $19.50
By Kitco News
Thursday January 09, 2014 8:43 AM
(Kitco News) - MKS (Switzerland) SA forecast gold prices to average $1,262 an ounce in 2014, drawing support during the first half of the year due to physical demand, the Swiss trade house said Thursday.
The firm forecast silver to average $19.50 in 2014, platinum to average $1,467 and palladium to average $765.
Gold fell 28% in 2013, with a large price drop during the second quarter, in particular. That prompted strong physical demand and large volumes of gold moved from Western to Eastern nations, MKS said. The firm said it expects this trend to continue in 2014, with Chinese gold demand in part compensating for “moderate” gold imports into India.
Much of the market’s focus also is likely to be on expected tapering of U.S. quantitative easing, MKS said.
“We expect gold to strengthen in H1 on the back of physical demand, but with limited upside potential,” MKS said, listing a $1,350 upside target. The firm listed an expected low for the year of $1,120. “In Q4, gold shall weaken on the back of higher U.S. interest rates talks and signs of global growth recovery.”
Meanwhile, MKS pointed out that some 13 million ounces of silver flowed into exchange-trade funds during 2013 despite the decline in prices. However, this also means a “significant liquidation risk” if silver price action fails to convince investors to hold those positions.
“We expect silver to top at $23/oz this year and its price average to be $19.50/oz,” said MKS, which also sees a 2014 low of $17.50. “We would not be surprised to see more volatility in silver and erratic trading from time to time.”
