(Kitco News) -Hope may spring eternal but reality is starting to bite within the precious metals space as one U.S. bank is revising down its forecast for gold and silver prices.
In a note Friday, analysts at Bank of America Securities said that they see gold prices averaging the year at $1,619 an ounce, down slightly from its previous average forecast of $1,625.
“We have also reduced forecasts for the precious metals after margin calls triggered a round of long liquidations especially in gold,” the analyst said.
The comments come as the gold market fights to push above $1,500 an ounce. April gold futures last traded at $1,496.80 an ounce, up more than 1% on the day.