SocGen sees gold prices rising to $1,400

Societe Generale predicts that gold prices will reach $1,400 per ounce in 2013 friom $1,308.29, before falling to $1,150 in 2014. The same note suggests silver will climb to $22 this year from $19.58 before dropping back to $20 in the next.

Societe Generale's Robin Bhar:

Our latest study of the global gold hedge book, compiled by Thomson Reuters GFMS using the Brady system, has just been released and pegs the book at 112 tonnes at the end of Q1 2013, down from 122 tonnes at the end of 2012. There was also some fresh hedging in the first quarter, notably from Petropavlovsk, the company set up by Peter Hambro, entering into 12 tonnes of forward sales recently in order to reduce volatility risk, with contracts extending to 2014 at an average price of $1,663/ounce. The company added a further three tonnes in the following three months, at an average of $1,408/ounce. Shanta Gold added one tonne of forwards during the second quarter, extending to December 2013 at an average price of $1,429/ounce.