The days of reasonably priced gold may come back again, if Goldman Sachs is correct.
The famed investment bank is forecasting that the yellow metal, which saw its price soar over the last 12 years to more than $1,900 an ounce, will fall to $1,050 by the end of 2014, according to The Guardian and other news sources.
Goldman Sachs cut its 2013 year-end prediction for gold to $1,300 an ounce, down from the $1,435 originally forecast and close to its current price. At press time, gold was trading at $1,276 an ounce.
“We expect that gold prices will decline further given our U.S. economists’ forecast for improving economic activity and a less accommodative monetary policy stance,” Goldman Sachs said, according to media reports.
“We expect this decline in prices to coincide with rising jewelry/retail demand, which we view as price responsive and not price setting,” it added.
Goldman Sachs’ prediction is just one of many recent bearish predictions for gold, which has been down for the year.