Deutsche Bank has caused a stir with the news it has downgraded its commodity price forecasts for precious metals including gold.
The commodity is usually seen as a safe haven during times of financial crisis, but investors have appeared unwilling to trust gold in recent months.
Rob Clifford, research analyst at Deutsche Bank, announced gold and silver prices "bear the brunt" of the downgrade revealed by the institution.
He explained there has been a 12 per cent and five per cent cut to gold forecasts, while silver is cut by even more – 17 per cent and ten per cent.
Daniel Brebner at Deutsche Bank said investors now anticipate the withdrawal of Fed monetary support via quantitative easing and ultra-low interest rates and this has had a negative impact on the price of precious metals.
A trader told The Bullion Desk this week that he believes the price of gold will hold until the release of the minutes of the Federal Open Market Committee.
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