Credit Suisse cuts 2015 gold price, bullish on zinc

New York (Dec 17)  “Gold prices we see as stabilized at current levels,” said the Credit Suisse Global Metals & Mining Team, “we now expect a $1,100-$1,300/oz trading range, we reduce our gold price forecast for 2015 to $1,225/oz and our long term price from $1,250/oz from $1,300/oz.”

“We see gold price supported at the $1,200/oz level by a lower mine supply and continued global physical investment demand,” the analysts advised.

However, they observed, “We see potentially bearish factors for the gold market including the bullish consensus USD outlook and market expectations for higher rates in balance with more bullish fundamental factors that drove gold from 2002-2008; shrinking mine supply, central bank buying and Asian demand.”

The analysts forecast a global gold market deficit by 2016 and that the gold price will be supported by “declining mine supply (2016 is four years after peak capex in 2012), as well as continued global bar hoarding and jewelry demand.”

Source: MIneweb