Goldman Sachs reiterated its bearish view on gold and copper Wednesday, but raised its forecasts for a host of other base metals, saying improved US economic activity will weigh on gold, although the Ukrainian conflict may delay the move of weaker gold prices.
“While we remain bearish on gold, escalating geopolitical tensions in Ukraine have offset stronger U.S. macro data,” Goldman said.
The firm said it continues to see gold prices by year-end at $1,050 an ounce. The silver-price forecast remains at $17.50 an ounce.
For copper, Goldman lowered its three-month, near-term forecast to $6,600 a metric ton from its previous forecast of $7,000 because of Chinese property-sector weakness; however, the firm also raised its 12-month forecast to $6,600 a ton from $6,200. It is keeping its year-end 2014 copper forecast at $6,200 a ton.