Goldman Sachs stands by its $1,050 forecast
Victoria Hewitt-Marsh, News Editor
14 Apr 2014, 10:14 a.m.
According to Goldman Sachs gold will continue to decline in 2014 as the U.S. economy continues to expand.
Bank analyst, Jeffrey Currie, confirmed he believes gold will finish the year at $1,050 per ounce and gold’s recent rally will soon subside. Currie believes the tapering of the Federal Reserve’s Bond buying program and a pickup in U.S. economic data will be a driver for lower gold prices.
“It would require a significant sustained slowdown in U.S. growth for us to revisit our expectation for lower gold prices over the next two years. While further escalation in tensions could support gold prices, we expect a sequential acceleration in both U.S. and Chinese activity, and hence for gold prices to decline.”