The price of gold per ounce, now down 19% since the beginning of 2013, is likely to witness its first losing year since 2000. This bearish trend has continued despite the Federal Reserve Bank's $1 trillion financial addition since December of 2012 and its decision to continue a monthly $85 billion "bond-buying quantitative easing" policy. [youtube]http://www.youtube.com/watch?v=-kIcHzNK2pA[/youtube] GOLDMAN SACHS Goldman Sachs recently released a report outlining their 2014 gold predictions. The report concluded that gold prices will be trending downwards over the next year. Jeffrey Currie, head of commodities for Goldman Sachs, argues that prices "could trade below $1,000". "While we agree with the mid-cycle price somewhere around $1,200, we believe that at least near term it can overshoot to the downside, which is why we have $1,050" as a target. Currie continues to note that a move such as this has not been witnessed since 2009. Uncertain political environment surrounding the US debt ceiling, along with the possibility of rising real interest rates and economic growth continue to fuel this bearish sentiment. Also, the uncertainty around raising the debt ceiling could lead to gold spiking in price if an agreement can not be made. Curry added that "one of the key reasons for diversification out of the U.S. dollar and into gold was the weakness of the U.S. dollar in the last decade. A lot of those pressures are being diminished in the current environment, particularly if QE-tapering continues which suggests the demand for gold from both EM for consumption and as well as from central banks is likely to ease going forward". By 2014 year end, it further predicts a potential 20% fall from current prices. HSBC & Bank of America price forecasts here: http://dailysilverupdate.com/blog/2...merica-merril-lynch-gold-price-forecast-2014/
