Gold experts have further cut back price forecasts for the metal this year after a sluggish first half, a quarterly Reuters poll showed on Monday, while gains in the dollar and a dearth of physical demand are likely to clip any attempted return to last September's record high for the rest of the year.
The precious metal is still on track to post another record-breaking average in 2012, extending its bull run into a twelfth year as ultra-loose monetary policy in key economies keeps interest rates at rock bottom.
But the median spot price forecast has been cut to USD 1,685 an ounce from USD 1,750 projected in a similar poll at the end of the first quarter, and USD 1,765 forecast at the start of the year.
"In the main, the dollar will be holding gold back, but the dollar can be trumped as the key driver for gold - and the key to that is heightened economic or political turmoil," said Ross Norman, chief executive of precious metals trader Sharps Pixley.
"The economic crisis has