BNP Paribas cut its gold price forecasts for 2011 through 2013, following the recent pullback in the precious metal's prices and said a further correction may be possible in the near term.

The brokerage said another episode of extreme risk aversion in the short term could potentially see gold correct further from its current level, as its sales offset losses in other asset classes.

Analyst Anne-Laure Tremblay, however, expects bullion to continue trend higher until 2013.

We see the gold price peaking in 2013, as the market starts to anticipate monetary tightening in the United States, but do not expect a sharp fall thereafter, analyst Tremblay said in a note.

The brokerage now expects gold prices to average $1,730 an ounce in the fourth quarter, down from its earlier forecast of $2,170 an ounce. Its 2011 forecast is down to $1,580 an ounce from $1,635.

BNP also cut its 2012 price forecast to $1,950 per ounce from $2,080, while lowering its 2013 estimate to $2,125 an ounce from $2,200 an ounce.

Spot gold was down 1 percent on the day at $1,660 an ounce by 1444 GMT.