Prices of gold will likely fall below $1,300 towards the end of 2014 as the U. S. will withdraw its monetary stimulus program, London-based metals consultancy Thomson Reuters GFMS said.

Updating its Gold Survey 2013, GFMS said average gold price could hit $1,500 per ounce by early next year but make a retreat below $1,300 towards the end of the year.

GFMS expects average gold price to be settle at around $1,350 per ounce in 2014, down 7 per cent from this year's average of $1,446.

The U. S. Federal Reserve is widely expected to start rolling back its $85 billion monthly bond-purchasing program as early as later this month.

Rhona O'Connell, head of metals research & forecasting, said, "Although the Fed tapering has been priced in already by the gold market that is not to say that you won't be getting a bit of a wobble as of when it is announced."

The estimated jump in the average gold price to around $1,500 at the start of next year was attributed by the consultancy to geopolitical tensions and a probable breakdown in talks over the U. S. debt ceiling.

After hitting a record high of $1,920.30 per ounce in September 2011, the average gold price has now slipped to $1,360 in the international market.