Gold Prices Seen Declining in 2013 as Investor Demand May Wane

Gold is poised to retreat 1.8 percent this year as demand may decline if instability in global financial markets eases and consumption drops, Australia’s Bureau of Resources and Energy Economics said.

Prices may average $1,638 an ounce in 2013 from $1,668 a year earlier, the Canberra-based bureau said in a report today. That compares with a December forecast of $1,738 for 2013.

Global mine production may increase to 2,956 tons in 2013 from 2,836 tons last year, the report said. World fabrication consumption, which includes jewelry, electronics and coins, may decline 1.3 percent to 2,580 tons in 2013, it said. Central banks may purchase 550 tons in 2013, compared with 536 tons last year, the bureau said.

Gold production in Australia may increase 5.9 percent to 270 tons in the year starting July 1, today’s report said. The country may export 347 tons in 2013-2014 from 320 tons a year earlier, it said.

To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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