Bad news for “gold-bugs”—bullion’s current beginning-of-the-year rally will not only lose steam, but prices could drop sharply by the end of 2014, according to Goldman Sachs’ Jeffrey Currie.
Currie, Goldman’s head of commodities research, told CNBC on Monday he had an end-of-year price target of $1,050 per ounce for gold, a 16 percent drop based from current prices of $1,251. The main culprit? Economic recovery.
“Our view there really is driven by the expectation of the U.S. economy reaching escape velocity,” Currie said on “Squawk on the Street.” “Essentially when you think about a short on gold … it’s essentially just a bet on a substantial recovery in the U.S. economy.”
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