LONDON Feb 26 Goldman Sachs cut its 2013
gold price forecast to $1,600 an ounce from $1,810 an ounce,
saying the metal's recent price drop and an increase in U.S.
real interest rates has led it to bring forward its projections
for a decline in the metal.
The bank also cut its 2014 forecast to $1,450 an ounce from
$1,750 an ounce. It reduced its three-month price view to $1,615
an ounce from $1,825 an ounce, its six-month forecast to $1,600
from $1,805, and its 12-month view to $1,550 from $1,800.
"Gold prices sold off sharply over the past two weeks,
extending the decline that started last October," the bank said
in a note dated Feb. 25.
"Most of this price decline has coincided with a gradual
increase in U.S. real rates, reflecting the combination of
better-than-expected U.S. economic data, a more hawkish
interpretation of recent Fed communication and a lower level of
U.S. fiscal and European sovereign risks."
"Net, these moves in gold and real rates have anticipated
the turn in the gold cycle that we had expected for the second
half of 2013."