Goldman Sachs cut its forecast for the gold price, which fell 7% last week, based on the low U.S. interest rates, while preparing the Federal Reserve (Fed) to reduce its program to stimulate the economy.
Goldman Sachs cut forecasts for the price of gold at the end of this year to $ 1,300 an ounce from 1435 dollars and its price at the end of next year to 1050 dollars to 1270 dollars.
The investment bank said in a note, "We continue to expect that the central bank purchases remain insufficient to offset the impact of declining prices."
He continued, "We expect that falling prices coincides with the growth in demand for jewelry, which we believe they are affected by the prices determined not."
The bank expects an improvement in U.S. economic activity later this year and in the next year, which leads to lower gold prices in the medium term, gold fell 24% since the beginning of this year.
Goldman Sachs cut forecasts for the price of gold at the end of this year to $ 1,300 an ounce from 1435 dollars and its price at the end of next year to 1050 dollars to 1270 dollars.
The investment bank said in a note, "We continue to expect that the central bank purchases remain insufficient to offset the impact of declining prices."
He continued, "We expect that falling prices coincides with the growth in demand for jewelry, which we believe they are affected by the prices determined not."
The bank expects an improvement in U.S. economic activity later this year and in the next year, which leads to lower gold prices in the medium term, gold fell 24% since the beginning of this year.
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