Goldman Sachs analysts predict the gold price will hit $1,050 in 2014—as the yellow metal’s spot price fell below the $1,200-an-ounce benchmark on Dec. 19 and 20.
A leading analyst for the investment bank thinks the metal will trade at $1,050 by the end of next year, according to Bloomberg.
UBS analysts have been similarly bearish, given the Federal Reserve’s decision to scale back its bond-buying program.
“Ultimately, the Fed’s decision should weigh down on gold and open up further downside from here,” two of the bank’s precious-metal analysts wrote. “Gold is bound to struggle as the Fed pursues normalization.”
The yellow metal’s closing price on Dec. 19 was $1,196 an ounce—its lowest level in nearly three years and a drop below the $1,200 benchmark.
At press time, it was trading at $1,203 an ounce.
Barring a dramatic upturn, this will be the first since 2000 that the price of gold fell for the year. The metal’s closing price on Jan. 1 was $1,693 an ounce.