BNP Paribas cut its 2014 gold forecast to $1095
Chris joined IG as a sales trader in 2006, having worked previously at Morgan Stanley, Credit Suisse and Merrill Lynch, gaining exposure to both equity and fixed income trading. After accruing 15 years' experience in financial markets, Chris...
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think y'days 14.5% collapse in Indian exports would have been felt in the gold complex for sure as well.
indeed, it was a big cut. I only have a headline, but I did see they expect a March taper, so I guess they are simply moving in line with that idea. Would be interesting to see its call on the USD, while also what supply side response would be given $1200 is seen a marginal cost of production
Did they give a catalyst for the change and what was their previous forecast? I assume the timing of tapering has firmed in their eyes.
Bigger article in Bloomberg here, looks like sentiment is more widespread http://www.bloomberg.com/news/2013-11-10/hedge-funds-cut-bullish-gold-bets-on-fed-stimulus-outlook.html
Significant turn around for them since May 2013 when they forecasted gold to bounce back to $1600. http://www.marketwatch.com/story/bnp-paribas-sees-gold-above-1600-in-6-months-2013-05-10