Gold’s Biggest Drop in 4 Months Underscores Goldman View
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Gold capped the biggest four-day drop since November after the Federal Reserve stoked the outlook for higher interest rates, underscoring Goldman Sachs Group Inc.’s forecast that the 2014 rally would reverse.
Bullion, which slid the most since 1981 last year as some investors lost faith in the metal as a store of value, rebounded 11 percent in 2014 amid faltering U.S. economic growth and escalating tensions in Ukraine before retreating to near $1,330 an ounce. Goldman’s Jeffrey Currie said this month the gains would be short-lived and the chances are increasing prices will reach $1,000 for the first time since 2009.