Large swings in the price of gold over the past two weeks have cast major doubts over the fate of the precious metal, however one bank suggests the worst may be over for bullion this year.
Late Friday, HSBC slashed its 2013 price forecast for gold to $1,542 an ounce, from $1,700, a target that’s still higher than current levels. Spot gold traded at $1,469 on Monday, and has risen around 9 percent since suffering its biggest one-day fall in 30 years on April 15.
HSBC said there are three factors that will give the yellow metal support, including a slowdown in exchange-traded fund (ETF) liquidation, robust retail demand from India and China and buying by emerging market central banks.
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