Gold Prices Could Decline Faster Than Expected – Goldman Sachs

Analysts at Goldman Sachs think the turn in the gold cycle is already underway. Analysts at the bank lower their 3-, 6- and 12-month gold price forecast to $1,615, $1,600, and $1,550 per ounce respectively, above the current spot price of gold, but they warned that a selloff could end up being "faster and larger" than expected.

"Although our US economic forecasts point to modest near-term upside to gold prices, we believe that a sharp recovery in prices to our previous price forecast is unlikely. In fact, we suspect that if indeed our forecast for further declines in gold prices proves correct, the fall in prices could end up being faster and larger than we expect as net long positions across COMEX futures and ETFs remain near their record highs," said analyst Damien Courvalin.

SPDR Gold Shares (NYSE: GLD) is higher by 0.4 percent on Monday. iShares Gold Trust ETF (NYSE: IAU) is higher by a similar amount. iShares Silver Trust ETF (NYSE: SLV) gained 0.8 percent.

Gold trades near $1585 per ounce.

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