India Gold - Customer Zone - Reuters

COMMODITIES GOLD GOLD: REBOUNDS WILL RISK SHIVER BATTERED AVERSION ON JAPAN AFTER BY BANISH DEBT SHARPEST U.S. CREDIT DOWNGRADE CORRECTION LOSS DOWNGRADE SINCE DESPITE FEARS? MAY CORRECTION FEARS AUGUST 2011
SocGen raises 2011, 2012 gold price forecasts
Aug 22 (Reuters) -
S ociete
Generale on Monday raised its gold price forecast for this year and 2012, predicting that citing political and
economic policy inertia with regard to debt management will continue to build appetite for the metal.
The bank raised its average gold price forecast to $1,950 an ounce for the fourth quarter of 2011, pushing its 2011 annual
average to $1,660 an ounce.
"$1,900/oz is already within reach, and we expect levels of over $2,000/oz to be achieved before year-end," SocGen said in a
note to clients. The bank also raised its 2012 forecasts to average $2,275 per ounce, and sees the metal trading around $2,500
an ounce in the fourth quarter of 2012.
"A combination of continued highly accommodative monetary policy, anemic growth, and continuing sovereign debt problems
will continue to push gold to new highs," SocGen added.
Gold hit a third consecutive all-time high near $1,900 on Monday after staging its biggest weekly gain in more than two years
last week. Late Monday, spot gold was up 1.6 percent at $1,888.90 an ounce, having earlier hit a record $1,894.10.
Shanghai Gold Exchange lifts margins for gold forwards
SHANGHAI, Aug 23 (Reuters) -
T
he Shanghai Gold Exchange (SGE) said on Tuesday that it will raise trading margins on three gold spot-deferred contracts
to 12 percent from 11 percent from Aug. 26 to limit trading risks following recent wild price swings.
It would also widen daily trading limits for those contracts to 9 percent, up from 7 percent, the SGE said on its website.
The contracts to be affected include Au(T+D) , Au(T+N1) and Au(T+N2) . The SGE said it was closely eyeing silver contract
price movements and would consider raising trading margins, transaction fees or costs of rolling over forward contracts
should volatility persist.
This is the second time the SGE has raised collateral requirements on gold forward contracts this year -- both times took place
in August -- as international gold prices hit a series of news highs over the past few weeks, boosted by a flight to safety on
worries over stalling U.S. recovery and crippling sovereign debt in the euro zone.
A worker casts a gold bar of melted gold jewellery at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna February 28, 2011. REUTERS/Lisi Niesner
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