BNP Paribas (EPA:BNP) also trimmed its gold forecast before the arrival of the new year, projecting an average price of $1,865.
“[W]e expect gold to achieve a new record high in 2013 due to further monetary easing, less tail risk related to a break up of the eurozone and ongoing support from physical demand,” it said, according to a Kitco report.
However, after that, BNP is looking for gold to begin a gradual decline as the market anticipates the withdrawal of monetary easing in line with improving economic growth.
Citibank isn't to be left out. The firm forecasts an average price of $1,750 for 2013, but sees that contracting to $1,655 in 2014.
Based on data from LBMA, Ross Norman, owner and CEO of Sharp's Pixley, was crowned the most accurate London gold price forecaster throughout the 12-year bull run. He is less bullish on the metal pointing to the likelihood of a stronger dollar, investor fatigue and softer demand from India.
“People seem to be universally bullish, but the price isn't moving,” Norman said. “To us that's an indicator that the market may be topping out.”
“I don't think we will see gold lower, but I think we may have to get used to a single-digit growth rate,” he added.
Describing gold's bull run as “highly unusual,” investor Jim Rogers told Kitco's Daniela Cambone that gold has been correcting for 15 or 16 months, trading sideways since September 2011, and he expects that correction to continue.
“I don't know any asset in history that has gone up for 12 years without a down year,” he said.
Securities Disclosure: I, Michelle Smith, do not hold equity interests in any of the companies mentioned in this article.
Gold Bullishness Toned Down in 2013?
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