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Banks Prediction For Gold In 2013

|Includes:Bank of America Corporation (BAC), BCS, BNS, C

Many banks are still bullish on thier outlook of gold in 2013. In reviewing Scotia Bank (NYSE:BNS), Barclays (NYSE:BCS), BofA (NYSE:BAC) and Citigroup's (NYSE:C) estimates, I have found that these banks are still bullish on gold moving into 2013 but have some questions moving into 2014.

Scotia Bank: In 2013 the bank states in it's report "Precious Metal Forecast PGM" which was released in November 2012, that they predict gold will reach $2,200/oz. The bank supports the increase in gold "because of the mess the Western world is in." The bank continues by stating "Europe has a debt problem that is proving all but impossible to solve and all efforts to date have revolved around throwing more money at the problem to avoid the monetary system from breaking down. That should be reason enough to be bullish for Gold and we think the latest move higher in Gold prices shows that it is."

Looking beyond 2013, Scotia Bank predicts gold to fall back to $1,100/1,200oz as investment Gold is liquidated.

Barclays' outlook for gold 2013: Sober look is reporting that Barclays' outlook for gold is not as bullish as Scotia Bank's. The company believes the largest risk for gold remains the strength of the US dollar. The report also states "Tactical allocators have taken some profits due to the recent stability of the dollar. That reduced some of the "fast money" in the market." The strength in the US dollar is why they predict gold to reach $1815/oz in 2013.

To read more: Outlook for Gold in 2013

Disclosure: I am long BNS.

Stocks: BAC, C, BNS, BCS