UBS forecasts $1,900 gold price average in 2013
The price of gold will average $1,900 an ounce in 2013, according to a forecast from UBS.
UBS has forecast a price of $36.80 for silver, although it lowered its previous forecast for platinum slightly to $1,740 from $1,800, according to reports on a new commodities outlook from the Swiss bank.
The chief driver of the gold price is partly the short term uncertainty around US fiscal policy, but also the view that monetary authorities will keep their policy loose through the rest of next year.
The US Federal Reserve in its latest statement on interest rate policy has said that it will keep US rates near zero until the country’s jobless rate falls closer to its historical average from the current higher level. The Fed will also continue its policy of quantitative easing, which effectively means printing money to force down the yield curve to stimulate growth through investment in the economy.
The gold price should also benefit from similar open ended comittments by the European Central Bank, while the pending election in Japan could result in a significant policy shift at the Bank of Japan as it seeks to more aggressively stimulate the domestic economy.