Wall Street is turning its back on gold.
Both Goldman Sachs and Deutsche Bank lowered their year-end forecast for the precious metal this week, citing an improving U.S. economy.
Goldman slashed its target to $1,545 per ounce for 2013, down from its previously estimate of $1,610. The bank also lowered its outlook for 2014 to $1,350 an ounce, down from an earlier forecast of $1,490.
Meanwhile, Deutsche Bank reduced its year-end forecast to $1,637 an ounce. While that's still higher than gold's current price, it's almost 12% below Deutsche Bank's previous forecast of $1,856 per ounce.
Deutsche Bank analysts said gold will be challenged by an improving U.S. economy and noted that the "apparent disregard" for risks, such as the events in Cyprus, suggest that safe haven assets like gold could remain out of favor.
Gold price have dropped more than 10% during the past six months and are nearly 20% below their all-time highs above $1,900, reached in September 2011.
Goldman analyst Damin Courvalin said he's not expecting a rebound anytime soon. Gold settled at $1,558.80 an ounce Wednesday.
While the resurgence of worries about Europe's debt problems, particularly the Cypus crisis, and disappointing U.S. economic data, have pushed investors toward the safety of U.S. Treasuries, gold prices have been unfazed. In fact, gold fell to a one-month low just last week, a sign that conviction for the precious metal is weakening.
Given that lackluster movement in gold, and Goldman's' expectation that U.S. economic growth will accelerate later this year, gold prices will skew toward the downside, said Courvalin.
While some gold bugs argue that the price of the yellow metal will rise as inflation picks up, Courvalin argues that catalyst is "likely several years away."
First there was Tulip Mania. Then there was the dotcom craze. And let's not forget the run-up in housing prices. The newest bubble on the block is in Bitcoins, a 4-year-old virtual currency that has already increased ten-fold this year. And like all other bubbles, this probably won't end well for any investors who jump in way too late.
Prices have nearly doubled during the past two weeks, and show no MOREHibah Yousuf - Apr 5, 2013 6:52 AM ET
Bitcoin -- the 4-year-old cryptic online currency -- is suddenly the hottest investment in the world. What other currency, stock, bond or derivative has seen its value spike 326% in the past month and 67% in less than a week?
On Wednesday, one bitcoin traded for $147. Just two and a half years ago, a bitcoin was valued at 5 cents.
The banking crisis in Cyprus certainly contributed to the interest in MOREMaureen Farrell - Apr 3, 2013 1:46 PM ET
It's been a week of ups and downs in the U.S. stock market, as investors have been watching developments in Europe while digesting mostly positive news in the United States.
With all eyes focused on Cyprus, U.S. stocks have taken a pause from the rally MOREHibah Yousuf - Mar 27, 2013 12:41 PM ET
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Now that it looks like Cyprus won't be leaving the eurozone, investors should not forget MOREPaul R. La Monica - Mar 26, 2013 11:33 AM ET
Gold is making a comeback, at least for today.
The precious metal shot above $1,600 an ounce Monday, as rattled investors looked for safe spots to park off while Cyprus sorts out its banking issues. Over the weekend, it seemed like the tiny nation was going to get its 10 billion euro bailout and it would be business as usual.
But then the strings were attached, in the form of a tax MOREMar 18, 2013 1:23 PM ET
If a eurozone nation is bailed out in the middle of the Mediterranean and nobody hears it fall, does it make a sound?
Cyprus could soon become the latest, and smallest, member of the euro currency union to request a bailout from the European Union.
That would make the island nation of just over 1 million people the fifth euro area MOREBen Rooney - Jun 14, 2012 3:01 PM ET
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