MAJOR U.S. investment bank Goldman Sachs has today issued a new report on gold investing, advising clients to sell gold short on the futures market.

Claiming that the "turn in gold prices [is] accelerating", Goldman Sachs' commodity analysts advise closing the bullish position in US gold futures they recommended in Oct. 2010.

They also advise opening a "short" position on the Comex gold futures exchange, with a price target of $1450 per ounce and a "stop-loss" – in case the trade goes wrong and gold investing prices actually rise – at $1650.

The shortest-dated gold futures contract closed New York trade on Tuesday at $1581.80 per ounce.

"Despite resurgence in Euro area risk aversion and disappointing US economic data," says Goldman Sachs' note, "gold prices are unchanged over the past month, highlighting how conviction in holding gold is quickly waning."

Unless the Cyprus banking fiasco and US economic slowdown make investing conditions much worse in other assets, the analysts add, "we believe a sharp rebound in gold prices is unlikely."

Goldman Sachs also cut its 3, 6 and 12-month gold price forecasts, with April 2014 now cut to $1390 from $1550.

Major bullion dealer Deutsche Bank yesterday cut its average 2013 price forecast by 12% to $1637 per ounce.

Fellow London market-maker UBS meantime cut its average 2013 gold price forecast from $1900 to $1740 per ounce.