Goldman Sachs Expect Gold Price to lose 15%

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Goldman Sachs Group Inc. expects commodities, especially gold, iron, copper and soybeans to prices to lose 15% of value in 2014. Downside risks for commodities are higher as the economic growth in the US accelerates.

Commodities followed by the Standard & Poor’s GSCI Index lost 4.7% this year, led by maize as provision surged, and prized metals on anticipations the Federal Reserve will taper economic stimulus. Goldman recounted the forecast deficiency for iron ore, gold, soybeans and copper as important, and said that they could help dwindle currencies in making nations, encompassing the Australian dollar and South African rand.

Comex gold futures for December delivery was down by 0.98% last quoted at $1,245.70, traded between $1,241.70 and $1,246.90. The yellow metal hit a low $1,240.30 and a high of $1,275.70 during this session.

Goldman Sachs expects that the price of gold will fall to $1,050 at the end of next year, restating a previous outlook. Currie said last month that gold is a “slam dunk” and a lost deal for next year as the U.S. economy extends its recovery.

Bullions are headed for the first fall since 2000 this year as investors slash holdings. Futures lost as much as 2.6% yesterday after the Feds signaled that tapering might start in the next few months. Lower gold prices would alleviate concern about inflation and present account shortfalls in appearing markets such as Turkey and India, it said.