Gold and silver hold steady as investors watch Greece developments
After a day of mixed performance yesterday, prices are holding steady this morning as investors remain focused on the development in Greece’s struggle with its debt crisis. Athens delayed its decision on accepting the terms of a new bailout for yet another day. Failure to strike a deal could push Greece into a chaotic debt default.
Major bullion bank HSBC is maintaining its forecast for an average gold price of $1,850 for 2012 and the anxieties about large and unsustainable government debt, easy monetary policies and mounting geopolitical risks.“A shift in focus from euro zone sovereign debt to the U.S. and its fiscal problems in an election year may stimulate investor demand for gold,” HSBC added.
According to HSBC, the rising mine output, sluggish jewellery demand and a large scrap supply should curb but not reverse the gold rally.“A shift in central banks’ attitudes toward bullion, as they have become strong buyers of gold after decades as net sellers, is perhaps the single most important bullish development for the market since the creation of gold ETFs,” HSBC continued.
“We expect this to continue, as official sector demand should tighten supply/demand balances, which has positive ramifications for prices,” HSBC concluded.
For more on metals click on the links below;
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Rick Rule – critical differences between gold bull today vs 70s – (King World News)
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