More Pain For Gold And Silver In 2014?

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Do you believe what they say about the fate of gold and silver in 2014?

Bullion will fall to $1,050 in the next 12 months as the U.S. central bank pares stimulus, Goldman analysts wrote in a Jan. 12 report. Gold may end 2014 at $1,000 an ounce, ABN said Jan. 10. Prices will average $1,219 this year, a London Bullion Market Association survey of traders and analysts showed.
“The metal is out of favor with most traders and major brokerages,” said Jonathan Citrin, founder and executive chairman of CitrinGroup. “Recent negative comments for the metal, along with positive expectations for global growth this year, have kept most gold bugs on the sideline.”
Gold for February fell $3.20, or 0.3%, to settle at $1,238.60 an ounce, its lowest close in a week.
March silver dropped 3 cents, or 0.2%, to $19.84 an ounce after Tuesday’s 2.1% drop.

Morgan Stanley also cut its gold targets for the next two years, with the bank’s analysts saying strength in stocks as well as regulatory pressures will hurt prices. The bank reduced its 2014 average gold-price forecast by 11.6% to $1,160 an ounce and dropped its 2015 forecast average by 12.5% to $1,138 an ounce.
“In our view, gold price performance will continue to suffer as long as risk assets in general and U.S. equities in particular continue to perform strongly, undermining the need for portfolio managers to hold more than a modicum of safe haven assets,” then Morgan Stanley analysts wrote in a note Wednesday. They join other banks in predicting declines .

http://www.bloomberg.com/news/2014-01-22/gold-target-cut-by-morgan-stanley-seeing-more-pain-to-come-.html

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