Wednesday, October 22, 2008

Gold and silver forecasts slashed

We might be getting close to an immediate term bottom, this is the third such headline* I've seen this week. Gold was recently trading at $733.70, down $34.30.
From the Financial Post:

Expectations for weaker industrial demand and growing mine supply has forced TD Newcrest to cut its gold and silver price forecasts.

The research firm now expects gold to average US$850 per ounce in 2009, down from US$1,100 previously. TD also cut its 2010 and 2011 targets from US$975 and US$900, moving to US$800 for those years and beyond.

Its target for silver plunges from US$20 per ounce next year to US$10.40, from US$18 to US$11 in 2010, US$16.50 to US$12 in 2011, and from US$14.50 to US$12 long-term....MORE

*We've also seen a couple higher price targets:

MarketWatch, Oct. 14: Gold could hit $1,500, say Merrill analysts

Reuters, Oct. 15: JP Morgan raises 2008-09 gold price forecast