NEW YORK, May 23 (Reuters) - HSBC raised its 2008 price forecast for gold to $915 an ounce from $850 on the back of a weakening dollar, more U.S. rate cuts, inflationary pressures as well as safe-haven demand.
"The U.S. dollar remains an important determinant of gold prices, but inflation concerns and a resumption in Fed rate cuts may offset the bearish effect of recent USD strength," James Steel, metals analyst at HSBC Securities in New York, wrote in a research note.
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Steel also raised his gold forecast to $850 from $725 for 2009, and to $725 from $650 for 2010.
For silver, Steel lifted his price outlook this year to $17.25 an ounce from $14 as strong investment demand should more than offset increased mine production.
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