Gold and silver ETFs – along with the underlying metals prices themselves — were pulling back from recent highs on Thursday, despite very bullish analyst reports. Copper, however, moved higher on news of continued strong forecasts.
Gold futures moved down 0.08% in early afternoon trading to about $1,456.60 an ounce. The SPDR Gold Shares ETF (GLD) fell about 0.20% to $142.
Though it’s taking a breather for another price run-up, gold is projected to move up handsomely over the next three years to $2,100 an ounce, Standard Chartered analysts said in a report Thursday.
The group cites rising incomes in India, China and other parts of Asia as the key driver for such a move. In addition, a weak U.S. dollar and need for a safe haven are pushing the precious metal up in prices and should overcome any headwind from rising interest rates between now and 2014.
On Wednesday, gold hit $1,463.70, prompting U.S. Global Investor’s head Frank Holmes to comment that investors should keep in mind that the metal “is far from being overbought by speculators.” Holmes insists that gold should continue to rise, since real short-term interest rates are below inflation–as are Treasury yields.
Silver also pulled back slightly Thursday, after nearing a 31-year high of $40 an ounce this week. The iShares Silver Trust (SLV) weakened by 0.01% to trade near $38.
Copper, meanwhile, pushed higher at about $4.42 a pound on rising expectations for Chinese demand.
The iPath DJ-UBS Copper Total Return Sub-Index ETN (JJC) was up close to 1% on Thursday at $58.82.