Posted by: youngragingbull | April 10, 2013

Goldman Sachs drops gold forecast for 2013 & 2014

Analysts at Goldman Sachs on Wednesday lowered their average gold-price forecast for 2013 to $1,545 an ounce from $1,610 expected previously and to $1,350 an ounce from $1,490 in 2014.

“Despite resurgence in euro-area risk aversion and disappointing U.S. economic data, gold prices are unchanged over the past month, highlighting how conviction in holding gold is quickly waning,” the analysts said in a note.

“With our economists expecting few ramifications from Cyprus and that the recent U.S. slowdown will not derail the faster recovery they forecast in 2H13, we believe a sharp rebound in gold prices is unlikely,” they added.

For the year-end forecasts, Goldman now sees gold to close out 2013 at $1,450 an ounce and 2014 at $1,270 an ounce.

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