MTECHTIPS;-’Silver to reach up to $37/oz by second half of 2013′
MTECHTIPS;-‘Silver to reach up to $37/oz by second half of 2013′Silver prices likely to average $33-$34 an ounce level in the fourth quarter of this year and as high as $37 in the second quarter of 2013, said TD Securities in a commodity snippet.The Canadian bank estimates, gold could average at $1,775 an ounce in the fourth quarter of 2012and possibly reach $1,900 by the second half of 2013.According to the bank, expectations for more monetary stimulus from central banks such as the US Federal Reserve and the European Central Bank should support commodities, particularly gold and silver.A slowing global economy and a lack of action on the U.S. fiscal side to deal with possible tax hikes and spending cuts will likely spur the U.S. Federal Reserve, the European Central Bank and the People’s Bank of China to embark on new measures to stimulate growthThat will be bullish for commodities in general, but will be especially supportive to precious metals as the opportunity cost for holding metal continues to be minimal. Base metals like copper may find support if China starts to lower interest rates and bank reserve ratios, and starts new infrastructure projects.TD Securities said that the Fed might act as soon as the Sept. 12-13 Federal Open Market Committee meeting where the Fed might take some open ended policy measures, such as raising the inflation target to lower the real rates or to buy Treasury bonds or mortgage-backed securities.
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