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Or sign-in if you have an account.vk]q[7wdvo(xs2m{0t31u]z(_media_dl_1.png Bloomberg(Bloomberg) — Deutsche Bank AG reduced gold price forecasts by as much as 22%, as investors become more wary about the outlook for US monetary policy and investment demand for the precious metal dries up.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBullion 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, lower by 17%, Michael Hsueh, a research analyst, wrote in a note. Both revised targets still imply prices are expected to gain from current levels below $4,100, although they are markedly less bullish than before.Deutsche Bank’s more cautious outlook follows a move last week by Goldman Sachs Group Inc., which axed $500 off its year-end forecast to $4,900 an ounce as it now sees no rate cuts by the US central bank this year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againGold has slumped by almost 12% so far this quarter, as the Middle East war initially lifted energy prices, boosting expectations for tighter monetary policy. At its most recent rate-setting meeting, Federal Reserve officials opted to keep policy unchanged but signaled growing support for hikes. At the same time, new Chairman Kevin Warsh vowed to restore price stability.“Fed repricing, together with resilient US macro data, has played the primary role in pushing gold lower,” Hsueh said. The bank’s fourth-quarter target is based on the view that the Fed will go on holding rates steady, but should there be three to four hikes, gold may fall to about $3,800, he added.Continued sales from gold-backed exchange-traded funds showed that the usual support for the metal is “notably absent,” he wrote. Meanwhile in China, the metal’s onshore discount to Comex prices suggests imports will not be a support for the market, he said.On the positive side, “the one pillar which remains strong is central bank demand, and we expect this to be the case for some time to come,” he said.Spot gold sank as much as 2.4% to just above $4,090 an ounce on Tuesday, while silver — a far cheaper precious metal that tends to follow gold, with typically amplified moves — lost as much as 5%. After the hitting a record near $5,600 an ounce in late January, gold prices have now shed more than 5% year-to-date.(Updates gold prices in second, final paragraphs. Adds silver.) Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.