Goldman Sachs reiterates outlook gold could fall to $1,050 - CNBC

(Reuters) - Gold prices are at risk of falling to as low as $1,050 per ounce, Goldman Sachs global head of commodities research Jeffrey Currie said in an interview with CNBC on Wednesday, reinforcing the bearish outlook for bullion after last week's rout.

That would be a new 5-1/2-year low, although still above the psychologically key $1,000 level that many market participants say is on the horizon.

The comment follows last week's massive sell-off that saw prices touch $1,077, the weakest since February 2010, as bullion's appeal as a hedge against inflation fades ahead of an expected U.S. interest rate hike.

Earlier this month, the influential Wall Street bank pegged gold price forecasts at $1,180 per ounce in three months, $1,150 per ounce in six months and $1,050 per ounce in 12 months.

Spot gold (XAU=) was at $1,095.10 an ounce by 1320 GMT on Wednesday, little changed from late on Tuesday. U.S. gold for August delivery (GCcv1) was down 0.2 percent at $1,094.50 an ounce.

(Reporting by Vijaykumar Vedala in Bengaluru; Editing by Andrew Hay)