Gold price correction was long overdue: Jim Rogers

NEW DELHI: Gold price correction was long overdue and I am not buying or selling the precious metal right now, said Jim Rogers, Chairman of Rogers Holdings. "I will buy gold if prices come down," Rogers told ET Now.

According to Rogers, investors are now getting out of physical gold. "I suggest buying into crude if prices fall sharply," Rogers said. Within the commodity space, Rogers is bullish on nickel, lead in base metals.

Rogers expects the Federal Reserve to keep interest rates low till 2015 and sees the US economy facing problems some time later owing to these low rates.

Meanwhile, Bank of America Merrill Lynch lowered its gold and silver price forecasts for 2013, citing weak fundamentals and lack of investment buying.

The bank now expects gold prices to average $1,478 an ounce in 2013, 12 percent below its previous forecast of $1,680.

"The business cycle puts gold in an uncomfortable position," BofA analyst Michael Widmer said in a note to clients. "Higher growth, rising in nominal yields and subdued inflationary pressure have all limited investor buying."

BofA Merrill also slashed its silver price outlook for this year by about 25 percent to $24.40 per ounce and said prices for the white metal could fall below $20 per ounce in the coming months.