Three major banks have slashed their gold & silver targets for 2013 and Indian jewellers are asked to stop selling gold coins and bars. June 24th Article:
Banks Cutting Gold Forecasts
Investments banks have been cutting their gold forecasts in recent months. Last week, UBS trimmed its 2013 gold price forecast by 10 percent, and on Monday, Goldman cut its 2013 forecast to $1,300 from $1,435. Credit Suisse believes that gold and silver prices are headed to pre-QE days.
"You need to re-examine your expectations for the gold market if you're long -- you need to stop thinking in terms of crisis and start thinking about where gold was pre-crisis," Tom Kendall, director and head of precious metals research at Credit Suisse, told CNBC on Monday.
"And if you go back just three and a half years, before we got into QE2 and unlimited easing, gold was trading $1,100 or $1,150 an ounce," Kendall added. Gold prices have declined almost 20 percent this year, a decline Kendall attributed to the removal of market fear factors that previously made gold an attractive asset.
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