ET:Goldman Sachs expects gold price to decline in 2014
Goldman Sachs said it expects gold prices to fall in 2014 driven by improving US economic data, rising real rates and the commencement of tapering of monetary stimulus by the US Federal Reserve.
The investment bank expects gold price to decline to $1,144 per ounce in 2014.
"Gold will likely remain volatile in a $1,250-$1,350/oz range until clarity on tapering," Goldman Sachs said in a note to clients dated October 23.
The bank lowered its gold price estimate for the fourth quarter of this year to $1,320 per ounce from its previous forecast of $1,375.
Gold added $6.10 an ounce to $1,337.84 an ounce by 0638 GMT on Thursday. It had jumped to $1,344.46 on Tuesday, its highest since September 20, after weak US jobs data cemented expectations the Fed will keep its stimulus measures in place until 2014.
