UBS lowered its gold price forecasts for the next one and three months, saying its prior outlook was overly ambitious given the recent slowdown in market momentum.
The investment bank cut its one month gold forecast to $1,775 per ounce from $1,950 and lowered its three-month gold forecast to $1,950 per ounce from $2,100 previously.
UBS, which expects silver price action to stay extremely volatile, also lowered its short-term silver price forecasts.
The bank cut its one-month silver forecast to $32 per ounce from $46 and its three-month silver forecast to $35 per ounce from $50 earlier.
"For silver, we think the metal has done itself a lot of reputational damage, some of which cannot be restored. After silver's spectacular pullback in May, when many investors got burnt, its investor pool shrank. And following the most recent collapse, that pool is smaller again," the bank said.
