Gold has tumbled further and faster than even the bears at Societe Generale thought in April, leading the bank on Monday to cut its year-end forecast for the yellow metal.
In a fresh note, analysts led by commodities-research chief Michael Haigh penciled in a a drop to $1,200 an ounce by Dec. 31, down from their April 2 call of $1,375 — a call that was made when gold – now changing hands near $1,382 — was trading closer to $1,600. They write:
That implies another 13.2% drop in gold prices. Through Friday, the front-month gold contract had slumped 17.2% this year.
–William L. Watts