Market Analysis: GOLD 1/15/2014

Bank of America

Bank of America in a research note said it lowered its gold forecast by 11% to $1,150 an ounce: "While index rebalancing may support gold until 14th January, we see limited support to prices beyond that. Our continued bearish view is driven by the challenging macro-economic environment, which is best captured by rising US 10-year rates and a persistent lack of inflation pressures."

Barclays

Barclays said in a research note that gold would test 2010 lows during 2014: "Absent a shift in sentiment, we believe risks are skewed to the downside given the potential for hedging; slowing physical demand; and, most important, a macro backdrop of modest growth, fewer tail risks, and a stronger dollar increasing the scope for further disinvestment."