The commodities analysts at Societe Generale have been among the most bearish on Wall Street.
Earlier this year, the declared the "End of The Gold Era" and argued that prices would fall to $1,375 by the end of this year.
But after talking to a bunch of clients since that initial report, the analysts have only gotten more bearish.
"We believe that the dramatic gold sell-off in April, combined with the prospect of the Fed starting to taper its QE programme before year-end, has resulted in a paradigm shift in many investors’ attitude towards gold," said SocGen's team led by Michael Haigh, Jesper Dannesboe, and Robin Bhar.
"This is likely to result in continued large-scale gold ETF selling this year and next," they added. "ETF gold selling has averaged about 100 tonnes per month since the April sell-off. We expect continued ETF selling to exceed higher demand for jewellery/bars and coins. Therefore, we have revised lower our Q4 13 gold forecast to $1,200/oz."
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