Mid-Day Gold & Silver Market Report – 3/5/2013
MORGAN STANLEY PROVIDES BULLISH FORECAST FOR GOLD
Investment firms continue to provide their outlook for Gold with the latest two offering similar predictions. Bank of America Merrill Lynch estimates Gold will reach $1,680 an ounce in 2013 and $1,838 an ounce in 2014. Previous estimates had Gold reaching $2,000 an ounce by Q2 2013. “After a multi-year rally, Gold prices have been range-bound for several quarters,” said Michael Widmer, Bank of America Merrill Lynch’s metals strategist. “In our view, headwinds to Gold prices will persist in the near term.” Morgan Stanley remains bullish for the yellow metal as they suggest the current prices provide a buying opportunity for investors. Morgan Stanley Chief Metals Economist Peter Richardson said, “In these circumstances, we believe that Gold has demonstrated considerable technical strength, offers good value at current prices both as an entry level to the trading range between US$1,540/oz and US$1,800/oz and as an option on any remaining upside surprise above this range that might result from the third part of the Great Monetary Easing.”
The Institute for Supply Management’s non-manufacturing index rose for the month of February to 56 from 55.2 in January. The increase reflects expansion from such industries as the housing market and service sector. “Business spending and investment continues to trend fairly strong despite some apparent consumer income pullbacks,” Guy Lebas, the chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “It’s a much more stable outlook.”
At 1:36 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,577.30, Up $2.90.
- Silver, $28.73, Up $0.18.
- Platinum, $1,588.30, Up $20.10.
- Palladium, $734.40, Up $20.90.