Acceleration in the U.S.' economic recovery will push the price of gold to fresh lows in 2014 after keeping steady for the remainder of this year, according to Goldman Sachs.
Commodity analysts Damien Courvalin and Jeffrey Currie said the price of gold this year would be supported by the recent string of slightly disappointing data out of the U.S. Consumer sentiment, retail sales and jobs growth in America have all come in below expectations this month.
Their research note comes as the Federal Open Market Committee (FOMC) meets in the U.S., with most economists expecting the U.S. Federal Reserve to announce the scaling back – or "tapering" - of its $85 billion-per-month bond-buying program when the meeting ends on Wednesday.
"In particular, our U.S. economists' expectations for a 'dovish' taper and gold's recent decline will likely limit the downside to gold prices heading into the September FOMC," Courvalin and Currie's note said on Tuesday.
But the analysts added that they expect gold prices to resume their decline next year, as U.S. growth becomes more entrenched and the Fed continues to rein its stimulus programs.
An improvement in the U.S. economy will likely hit gold – which is generally seen as a 'safe haven' in times of economic turmoil – as investors gain the confidence to buy up riskier assets like equities.
(Read more: Gold price: 'Last hurrah' may be on its way)