Gold prices 8216 could drop 15 8217

Investors often rally around gold in times of financial crisis, but the price of gold has been predicted to drop over the course of 2013.

According to strategists at Societe Generale, the commodity's value could be set to dip by as much as 15 per cent by the end of the year.

It was claimed by the analysts that the price of gold might average $1,500 (£993) per ounce over the course of this year.

Patrick Legland wrote in a research note: "This 15 per cent fall is quite dramatic, especially compared to the Bloomberg consensus forecast of $1,752 per ounce by the end of 2013."

Fears that money-printing by major central banks could lead to very high inflation has driven the cost of gold up in the last five years but these concerns are fading, it was noted by the analyst.

The price of the commodity came down immediately after the Cyprus bailout was agreed between the country's parliament and Europe.

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