Goldman Sachs Says Short Gold

By
A A A

The report cites gold's recent lackluster price action and the firm's expectation that the acceleration in US growth later this year to above-trend pace will support US real rates. As a result, the firm is lowering its gold price forecast with year-end targets of $1,450/toz in 2013 and $1,270/toz in 2014.

Risks to this short include upside to gold prices should US growth continue to slow. However, Goldman Sachs ( GS ) sees risks to current prices skewed to the downside through 2013. If proven correct, the investment bank sees an even faster fall to gold prices, as aggregate speculative net long positions across COMEX futures and gold ETFs remain near record highs.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: GS

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

60%

Most Active by Volume

57,375,820
  • $16.20 ▼ 0.80%
46,357,695
  • $102.13 ▲ 1.23%
39,856,106
  • $3.59 ▲ 0.84%
36,749,915
  • $19.21 ▲ 5.38%
35,094,671
  • $74.63 ▼ 1.75%
25,538,058
  • $48.06 ▼ 0.23%
24,241,250
  • $38.18 ▲ 1.03%
22,422,839
  • $11.20 ▲ 3.70%
As of 8/27/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com