September 25, 2012 / 6:26 PM / 5 years ago

Citi raises gold price forecasts for 2012-13

Sept 25 (Reuters) - Citigroup raised its gold price forecasts for 2012 and 2013, saying ongoing global economic issues are causing gold to remain a favored asset for investors.

“With continued concerns over the economic health in the developed world, safe-haven demand has seen renewed investor interest in gold-linked securities,” analysts at the bank said in a note dated Sept. 24.

Citi raised its year-end price forecasts for most precious and base metals.

The bank increased its 2012 price forecasts for gold, silver and platinum by about 2 percent, 5 percent and 1.5 percent, respectively, while it cut its earlier forecast for palladium prices by about 1.7 percent.

For 2013, Citi raised gold and silver price expectations by over 3 percent each, and those of platinum and palladium by over 6 percent each.

Illegal strikes in South Africa, mine closures and project delays were seen causing supply issues in the market for platinum and palladium, analysts at the bank said.

Base metals were mostly forecast about 1 percent higher for 2012, with lead expected to rise 4.3 percent from earlier. Nickel was seen falling about 1 percent for the year, from previous forecasts.

For a list of the latest price forecasts of Citigroup on precious and base metals, click the following link. (Reporting by Naveen Arul in Bangalore; Editing by Steve Orlofsky)

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