Analyst Goldman Sachs cuts silver and gold price forecasts© Reuters Goldman Sachs cuts silver and gold price forecastsAn analysts at U.S. bank Goldman Sachs (NYSE:GS) have cut their silver and gold price forecasts, causing the precious metals to moderately decline.

Gold will average $1,850, $1,950 and $1,950 an ounce over the next three, six and 12 months, according to a new forecast by Goldman analysts. The previous forecast was $2,100, $2,300 and $2,500 an ounce, respectively.

Silver price forecasts were lowered by the bank to $21, $23 and $25 an ounce, although silver was previously expected to average $30 an ounce for all the periods indicated.

“The main conclusion is that in the current environment of tighter monetary policy and persistent recession fears, gold’s tactical direction will be determined by whether the Fed’s priorities lean toward fighting inflation or supporting growth,” the bank said in a statement.

December gold futures were down 0.2% to $1,809.30 a troy ounce by 12:27 Moscow time. On the eve of quotations being updated, the maximum has been updated since June 29.

Meanwhile, silver contracts for September delivery also fell 0.2% to $20,445 an ounce.

Palladium dropped 0.7% to $2,202 an ounce, while platinum gained 0.2% to $931 an ounce.