India's Reserve Bank has stipulated that of the imported gold, 20% of the same in any form should be made available for export. Inbound shipments of bullion may decline as a result. India has also spiked import tariffs on gold to 8%, recently.

MUMBAI : Gold prices may have appreciated in the past few days, but investment bank Goldman Sachs is of the opinion that gold prices may decline in the medium term as US economy improves and accommodating policy stance gets diluted.

?Medium term, we expect that gold prices will decline further given our U.S. economists? forecast for improving economic activity and a less accommodative monetary policy stance,? Goldman Sachs Group Inc. analysts wrote in a report and was cited by Bloomberg. Six and 12-month forecasts of gold by Goldman Sachs has been pegged at $1,300 and $1,175 respectively.

Gold for delivery on August 13 on the Comex was seen trading at $1,334.65/oz, a loss of $1.35 or 0.10%.

?Gold prices remain a function of the outlook for monetary policy, not just in the U.S. but around the world, and economic growth, and how those affect the equity markets and the dollar,? said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co to Bloomberg.

?As India increases measures to curb gold demand, it may be negative in the longer term,? analyst noted.

India's Reserve Bank has stipulated that of the imported gold, 20% of the same in any form should be made available for export. Inbound shipments of bullion may decline as a result. India has also spiked import tariffs on gold to 8%, recently.

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