Société Générale S A became the fourth money center bank to mark down its 2013 gold target price following record outflows from gold ETPs.
Holdings of gold exchange-traded products sank 154 metric tons worldwide over the first quarter, the largest drop-off on record, according to analysts at Barclays Capital. By contrast, gold assets rose 71 tons in the year-ago quarter.
Outflows of $6.6 billion made the SPDR Gold Shares Trust (GLD) by far the biggest loser among gold ETPs. The iShares COMEX Gold Trust (IAU) shed $296.4 million.
SocGen declared gold to be in bubble, destined to head into a bear market as the U.S. economy improves. The French bank slashed its bullion price forecast from an average of $1,800 an ounce this year to $1,500 and to $1,400 for 2014.