Goldman Sachs Predicts Gold Will Slide Further Throughout 2014

Goldman Sachs Predicts Gold Will Slide Further Throughout 2014 (Bloomberg)

Gold closed at its lowest price in three years in response to the the Federal Reserve‘s announced plan to begin tapering its monetary stimulus. The drop extended a slide that has sent the metal to its biggest annual drop since 1981. Bullion for immediate delivery fell 2.4 percent to close at $1,188.68 at 5 p.m. Thursday in New York, the lowest settlement since Aug. 3, 2010 Gold futures for February delivery fell 3.4 percent to close at $1,193.60 an ounce at 1:45 p.m. in New York, the lowest settlement for a most-active contract since Aug. 3, 2010. The price has tumbled 29 percent this year. Goldman Sachs Group Inc. opined that the drops aren’t over and that prices will dip to $1,050 by the end of 2014. “Gold is now likely to grind lower throughout 2014,” said Jeffrey Currie, Goldman’s head of commodities research in New York.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.