Gold forecast: Citi cuts its gold price forecast

Citigroup analysts cut their gold prediction for 2013 by 4.2% to $1,675 a troy ounce and 0.2% to $1,653 a troy ounce for 2014.
Citigroup: “Gold’s recent struggle to sustain itself beyond the $1,800 technical resistance level despite seemingly conducive conditions such as record low interest rates and fiscal uncertainty has cast doubt onto the bullish case for gold among the investor community,” said the analysts in a note.
More from Citigroup:“Investors appear to be losing faith in the bull story for gold, if net managed money positions on Comex provide a reasonable guide,” said the analysts, who noted that net long managed money positions on Comex have dropped by 50% since the start of October 2012. Positive flows for exchange traded fund investing — an important gauge of investor sentiment — has also stalled since that month, with 17 metric tons of redemptions seen so far in 2013.
Citigroup silver price forecasts remained unchanged. .

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