Goldman sticks with bearish gold forecast

|By:, SA News Editor

Couldn't they have told us 3 days and $65 ago? Gold's 2013 rally won't last, says Goldman's Jeff Currie, sticking with his $1,050 per ounce price target. The reasons for the metal's move this year - the U.S. weather-induced economic slowdown, worries of Chinese credit, and tensions in Ukraine - are set to become non-factors, he says.

Firmly in the camp that the economy hasn't caught cold, Goldman says look to the next several weeks of economic data releases to begin confirming the Fed's hawkish message.

As for China, Currie sees a gradual wind-down of that credit boom that could hit U.S. growth, but not significantly so. Unless there's further escalation in Ukraine, says Currie, that's become an old story as well.

GLD +0.6% today.

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