Goldman Sacs predicts lower gold price
Adam Pike, News Editor
24 Mar 2014, 9:42 a.m.
Despite gold’s strong performance so far this year Goldman Sacs are predicting that gold will dip to $1,050 this year.
Goldman argues that the recent surge can be attributed to an increase in Chinese physical demand, bad weather in the U.S. and geopolitical tensions in the Ukraine. Goldman is predicting that these catalysts will fade during the remainder of the year and as such the gold price will be under pressure.
More importantly Goldman believes the continued tapering of the Feds asset program will reduce gold’s appeal as a hedge against inflation.