Seeking Alpha

HSBC downgrades Barrick Gold, Yamana Gold as it cuts gold outlook

  • HSBC cuts its 2014 price target for gold to $1,292/oz. from $1,435 and its 2015 forecast to $1,310 from $1,395, downgrading Barrick Gold (ABX -2.1%), Yamana Gold (AUY -2.6%) and African Barrick Gold (ABGLF, ABGLY) in the process.
  • ABX may benefit this year from new mine plans which could radically improve near term cash flow, but this likely will come at the expense of reserves and mine life, the firm says in cutting shares to Underweight with a $16.50 price target (from $19.60).
  • AUY enjoys low average costs but the firm believes this is more than factored in, and cites the relatively small production base and concerns about long-term sustainability of profitability at El Penon in lowering shares to Underweight with an $8.20 target (from $9.60).
Comments (9)
  • 6151621
    , contributor
    Comments (1067) | Send Message
     
    Great sheeple herding calls from analysts who keep anchor bias in vogue by predicting the price of gold won't change much. It is the best path to keep your cushy job as a talking head.

     

    What happen to 700 or 2000 USD gold predictions from analysts? Did they get fired or laughed at, one has got to wonder?!
    22 Jan, 03:39 PM Reply Like
  • Ninja Trader
    , contributor
    Comments (604) | Send Message
     
    HSBC is one of the banksters that is manipulating gold, so they should know where it's going. Just sold all of my AUY yesterday and keeping my powder dry for the final drop that is supposedly coming. Keeping the faith that gold will rise well over $2,000 in the coming year(s).
    22 Jan, 03:55 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (87) | Send Message
     
    Randgold (GOLD) did not get the memo.
    22 Jan, 04:45 PM Reply Like
  • dancing duke
    , contributor
    Comments (39) | Send Message
     
    if they knew anything about the price of gold in the next six months they would not
    be working for hsbc. lets be serious
    22 Jan, 08:06 PM Reply Like
  • Ninja Trader
    , contributor
    Comments (604) | Send Message
     
    Let's see...gold is $1,233 today and AUY is $9.50/share. HSBC has a price target of $1,292 for gold (higher) and $8.20/share (much lower) for AUY. That is below their 52 week low. Me thinks their idiots as well as crooks!
    22 Jan, 09:53 PM Reply Like
  • Humber
    , contributor
    Comments (12) | Send Message
     
    Nice response Dancing Duke-

     

    You gotta believe Precious Markets are manipulated. Those guys are useless in their predications. No one knows where the prices will go. You can only assume with all the money printing going on and the understated unemployment rate that the real gold prices should be significantly higher than $1,250. I would rather be investedin something tangible like gold than into phoney paper investments.

     

    I have long positions in Yamana and New Gold
    23 Jan, 01:08 PM Reply Like
  • Humber
    , contributor
    Comments (12) | Send Message
     
    These analysts are all full of it. I agree with Dancing Dukes comments that if they knew where the price of gold was going, why continue to work for someone else. You can do much better day trading on your own. I stopped listening to those idiots. You just gotta believe gold will go much higher than its currently trading at. The markets are rigged big time today. The precious metals are more manipulated than any other sector. What goes down must surely spring back to life big time. It is only a matter of time.

     

    Long on Yamana gold and New Gold.
    23 Jan, 08:24 AM Reply Like
  • TheLastSpartan
    , contributor
    Comments (107) | Send Message
     
    Good job HSBC, good job! Yesterday you downgrade, this morning gold is already up over $16.
    23 Jan, 08:47 AM Reply Like
  • 6151621
    , contributor
    Comments (1067) | Send Message
     
    Right but still below there target price of $1292. In any case, only some guys making stories up to sell products and keep the flow going.
    23 Jan, 01:18 PM Reply Like
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