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Credit Suisse Growing Less Convinced of Gold Peak This Year

February 2, 2013 in Gold, Investing, Precious Metals

By Nicholas Larkin – Feb 1, 2013 (http://www.bloomberg.com)

Credit Suisse Group AG is growing less convinced of its forecast that gold will peak on a quarterly basis this year, saying prices are unlikely to return to the 2011 intraday high.

Accelerating U.S. growth and contained inflation means “the downside risks are building for gold,” Tom Kendall, an analyst at the bank in London, said in a report e-mailed today. Gold climbed to an all-time high of $1,921.15 an ounce in September 2011. It averaged a record of $1,718 in the fourth quarter of 2012 and Credit Suisse is predicting an average of $1,790 for the third quarter this year.

“We think it highly likely that the market has already seen the absolute high and we caution that our forecast of a peak in quarterly average terms in the third quarter this year may also prove to be too bullish,” Kendall said. “The peak of the fear trade has now also passed.”

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