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."
IAC/InterActiveCorp shares took a tumble Wednesday, amid confusion surrounding the company's 2013 forecast.
Prior to the market's opening bell Wednesday -- IAC, which runs sites like Ask.com, Dictionary.com and Match.com -- issued third-quarter earnings that topped Wall Street's expectations. Following the release but prior to its earnings call, IAC said it expects to report an operating loss for its "media and other" segment in 2013 in a filing with the Securities and Exchange MOREHibah Yousuf - Oct 24, 2012 6:11 PM ET
Corn prices hit a fresh record high Friday as the U.S. government slashed its forecast for the drought-damaged corn crop even more than analysts were expecting.
Corn prices rose more than 3% to an all-time high of $8.49 per bushel Friday morning, before falling back to $8.18 per bushel by the afternoon.
In its monthly report, the U.S. Department of Agriculture projected that the corn harvest would plunge to 123.4 bushels per MOREHibah Yousuf - Aug 10, 2012 3:02 PM ET
Despite a stubbornly slow economic recovery at home and severe headwinds from Europe and Asia, U.S. companies are on track to deliver a tenth straight quarter of rising profits. But a closer look reveals some alarming trends.
With reports from more than 80% of the S&P 500 companies on the books, earnings are on pace to grow just 0.6% during the second quarter, the slowest since the third quarter of MOREHibah Yousuf - Aug 7, 2012 8:10 AM ET
|4 takeaways from Janet Yellen's testimony|
|Under Sanders, income and jobs would soar, economist says|
|Sears announces it's closing at least 50 stores|
|Mark Zuckerberg reacts to board member's India comments|
|China is on a massive gold buying spree|