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Gold (GC=F) August futures opened at $4,210.80 per troy ounce on Tuesday, up 0.2% from Monday's closing price. The price of gold moved lower this morning to $4,134.90 per troy ounce as of 8:42 a.m. ET.
Gold prices appear to be losing some steam this morning after a stronger opening than on Monday. While peace talks appear to be progressing between the U.S. and Iran, future Fed pricing is driving some investment banks to reassess their gold price expectations for the year:
Bullion is now seen at $4,300 an ounce in the third quarter, down by more than a fifth from the prior outlook, and $4,800 in the final three months, down by 17%, Michael Hsueh, a research ****** yst, wrote in a note. Both of the revised targets still imply prices are expected to gain from current levels near $4,140, although they are markedly less bullish than before.
Deutsche Bank's less optimistic outlook echoes a move last week by Goldman Sachs Group Inc., which chopped $500 an ounce off its year-end forecast to $4,900 as it now sees no rate cuts by the US central bank this year.