After a one-day reprieve, gold prices are on the defensive again, trading below $1,100 an ounce, and one major bank expects the weakness to continue.
Wednesday morning, August Comex gold future fell more than 1%, last trading at $1,087.80 an ounce, down more than $15.70 on the day.
In an interview with Bloomberg Tuesday, Goldman Sachs’ Jeffrey Currie said that he expects gold could eventually fall below $1,000 an ounce as the “worst is yet to come.”
“With the more positive outlook on the dollar, and with debasement risk starting to fade, the demand to use gold as a diversifying asset against the U.S. dollar becomes less and less important,” said Currie in his interview with Bloomberg.
“There is a probability that the market trades below $1,000 this year given our broader commodity view,” he added.
Currie came to the forefront in the gold in 2013 when he warned investors to sell gold. Some market analysts noted at the time that Goldman Sachs’ negative outlook on the yellow metal helped create the biggest decline in the precious metal in 30 years.