New York, NY (PRWEB) April 10, 2013
Deutsche Bank on Tuesday reduced its 2013 gold price projection and the bank’s analysts said that returns from the yellow metal could be on track to record their worst annual performance since 2000, the year before gold’s bull market began.
According to the Economic Times, Deutsche analysts wrote in a statement to clients that the forces which have pushed gold higher since 2001 “have all moved into reverse since the end of last year." Those “forces" include a weakening U.S. dollar, falling real interest rates and rising U.S. equity risk premiums.
Deutsche Bank’s new gold price forecast is 12 percent lower than the previous estimate. The bank now sees gold averaging $1,637 this year. Deutsche also lowered its silver price estimate to $31 an ounce, which is a decrease of 16.5 percent from the previously released projection. Overall, the bank sees platinum group metals outperforming the field due to low mining output and high demand from automakers.
Other banks have altered their gold price predictions in recent weeks, as employment reports and Federal Reserve announcements have given analysts new data to examine. A few banks have lowered gold price estimates but a large number of institutions have publicly stated that, under current market conditions, a U.S. economic recovery is not possible and many household investors seem to agree that the Fed is simply digging a deeper hold for itself.
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