(MarketWatch)- Investment bank UBS AG  Monday lowered its spot gold and silver forecasts to reflect a recent drop in the precious metal markets.

UBS lowered its 3-month average spot gold price by 7.1% to $1,950 a troy ounce and its 1-month average spot gold price by 9% to $1,775/oz. The bank lowered its 3-month average spot silver price 30% to $35/oz and its 1-month average spot silver price 30.4% to $32/oz.

“Our core bullish view on gold remains unchanged and the light nature of [speculative] positioning is a big positive, but our previous one-and three-month [prices]…are overly ambitious given the recent slowdown in market momentum,” UBS said.

It also noted that it sees the gold/silver ratio strengthening in the months ahead as gold outperforms.