NEW YORK (
(GS - Get Report)
on Wednesday lowered its gold price forecast and recommended shorting COMEX gold positions.
The bank said in a research note that despite uncertainties over events in Cyprus, gold prices have remained unchanged during the period. It also noted that Goldman economists believe the U.S. economy will post a faster recovery in the second half of 2013.
"Given gold's recent lackluster price action and our economists' expectation that the acceleration in US growth later this year to above-trend pace will support U.S. real rates, we are lowering our [U.S. dollar]-denominated gold price forecast once again," the note said.
Goldman lowered its average 2013 gold price forecast to $1,545 an ounce from $1,610 an ounce, and reduced its 2014 average target to $1,350 an ounce from $1,490 an ounce.
The bank forecast a year-end target for gold of $1,450 an ounce, and a target of $1,270 an ounce for the end of 2014.
-- Written by Joe Deaux in New York.