HSBC cuts 2012 average gold price outlook, raises 2013 view

Wed Oct 17, 2012 8:57am EDT

Oct 17 (Reuters) - Major bullion bank HSBC cut its 2012 average gold price outlook for 2012, but raised its 2013 and 2014 forecasts on solid investor demand and high commodity prices.

The bank cut its 2012 price outlook to $1,700 per ounce from $1,760 in light of price weakness earlier this year and raised its 2013 forecast to $1,850 from $1,775. It also raised its 2014 price forecast to $1,775 from $1,750.

"We remain bullish on gold, and we expect prices to reach $1,900 an ounce by year-end," HSBC chief commodity analyst James Steel said in a note to clients.