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Credit Suisse Group AG (CS) analysts recently lowered their 2017 gold forecast, pointing to slowing sales of exchange-traded funds (ETFs) and speculation surrounding how the election could impact interest rates. These analysts cut their full-year forecast to $1,338 per troy ounce from $1,438 per ounce, according to Barron's.

Sales of gold-based ETFs, for example the SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), have fallen7% since November 8. In addition to this flagging activity, the precious metal's price has dropped up to 8%after rising to $1,340 per ounce that night.

Potential Headwinds

Gold prices could face further headwinds going forward, as rising bond yields and expectations of Federal Reserve (Fed) interest rate hikes may drive investors away from the precious metal.

Bullish Forecast

Even though the Credit Suisse analysts recently reduced their full-year forecast, they still predict that gold prices will push higher in 2017. The analysts pointed to favorable supply-demand fundamentals when forecasting that the precious metal's price would average $1,275 during the first quarter and reach $1,400per ounce in the fourth quarter, more than $200 above spot gold's price of roughly $1,170 an ounce at 4:30EST on December 8, according to Kitco figures.