Not shaken by gold's big start to the year, BAML slashes its price forecast to $1,150 per ounce from a prediction of $1,294 made just six weeks ago.
Silver is cut to $18.38 from $26.38.
“If investors stopped selling gold, prices could stabilize around $1,200.," says analyst Michael Widmer. "Yet, this is not our base case and a more likely scenario is for investors to continue reducing their exposure. Our model suggest that this could take prices down to $1,000."
Another big leg down, however, could be an opportunity for bulls, says Widmer, who muses about "interesting entry points" for the metal this year.