CIBC Raises 2013 Average Gold Price Forecast To $1,425/Oz

Wednesday October 23, 2013 10:57 AM

CIBC World Markets lifts its 2013 average gold price forecast to $1,425 an ounce, up from $1,360, noting that the drop in gold prices wasn’t as steep as expected. Robert Sedran, analyst at CIBC World Markets says third quarter gold prices declined 6% from the previous quarter, which was less than anticipated. “At current levels, we believe market expectations for the start of (Federal Reserve quantitative easing) tapering by year-end 2013 are reflected in the gold price. The recent outcome of the U.S. debt ceiling debate should serve to push back these expectations thus seeing gold gain support for Q4/13,” he says.

BofAML Turns Bullish On Gold

Submitted by Tyler Durden on 10/23/2013 14:33 -0400

BofAML's MacNeil Curry is changing his view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the two-month downtrend (confirmed on the break of 1330) tells him that a medium-term base and bullish turn is unfolding. BoFAML looks for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions Curry suggest buying dips into 1309, cautioning that this bullish view is "wrong" if gold breaks below 1251. For those awaiting additional confirmation of a turn, Curry notes you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).

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