HSBC raises gold, silver, platinum price forecasts
NEW YORK, May 23 (Reuters) - HSBC raised its 2008 price forecast for gold to $915 an ounce from $850 on the back of a weakening dollar, more U.S. rate cuts, inflationary pressures as well as safe-haven demand.
"The U.S. dollar remains an important determinant of gold prices, but inflation concerns and a resumption in Fed rate cuts may offset the bearish effect of recent USD strength," James Steel, metals analyst at HSBC Securities in New York, wrote in a research note.
Steel also raised his gold forecast to $850 from $725 for 2009, and to $725 from $650 for 2010.
For silver, Steel lifted his price outlook this year to $17.25 an ounce from $14 as strong investment demand should more than offset increased mine production.
In addition, Steel increased his platinum forecast to $2,100 an ounce from $1,850 and cited a widening deficit because of power problems in top producer South Africa and growing autocatalyst demand.
On Friday, spot gold XAU= traded at $928 an ounce. Spot silver XAG= was quoted at $18.20. Spot platinum XPT= fetched $2,178. (Reporting by Frank Tang; Editing by John Picinich)
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