You Should Short Gold Now: Goldman Sachs

NEW YORK ( TheStreet) -- Goldman Sachs ( GS) 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.

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