BAML moves quickly to cut gold price outlook

|By:, SA News Editor

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.

GLD +0.2%, SLV -0.1% premarket

Gold and silver ETFs: GLD, SLV, IAU, AGQ, PHYS, SIVR, USLV, ZSL, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, DSLV, DBS, DGZ, AGOL, GLDI, DGLD, SLVO, TBAR, USV, UBG