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Banks hold bearish gold calls

Goldman Sachs and Societe Generale aren't backing down on their recommendations against investing in gold.

Hedge funds and other investors ignored that warning in the first months of the year, driving the price of bullion up about 10 percent. The cost of gold has retreated slightly following Federal Reserve chair Janet Yellen's indication March 19 that interest rates were on track to increase.

"We continue to believe that the economic momentum in the U.S. shows further improvement," Michael Haigh, the New York-based head of commodities research at SocGen, said according to a report by Bloomberg."We reiterate our very bearish outlook for this year. Prices could drop below $1,000. I would not rule that out."

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