(Kitco News) One bearish outlook on gold this year comes from Capital Economics, which is projecting gold prices to end the year at $1,400 an ounce — more than $200 lower than last week’s seven year-high.

“Gold will probably receive some support from central bank purchases, many of whom wish to diversify their reserves away from U.S. dollar assets, but, in our view, this won’t stop gold from falling to US$1,400 per ounce by end-2020. This compares with a consensus forecast of $1,512,” wrote Capital Economics commodities economist Alexander Kozul-Wright on Tuesday.

At the time of writing, February Comex gold futures were last trading at $1,545.40, down 0.34% on the day. Last week, gold briefly hit a level above $1,611, an ounce on rising geopolitical tensions

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