Yesterday morning we took a look at silver. So, it is only fitting that we follow-up with gold, particularly when we see the following story get some play today in the financial news media.
via FoxBusiness.com
Pointing to forecasts for stronger U.S. economic growth later this year, longtime gold bull Goldman Sachs (GS) slashed its price targets on the precious metal on Wednesday, warning prices could tumble below $1,300 an ounce by the end of 2014.
The Wall Street heavyweight not only told investors to close their long gold position, Goldman is now recommending a short COMEX gold position as one of its top trades.
“While there are risks for modest near-term upside to gold prices should U.S. growth continue to slow down, we see risks to current prices as skewed to the downside as we move through 2013,” Goldman analysts Damien Courvalin and Jeffrey Currie wrote in a note to clients.
Marking Goldman’s second downgrade in six weeks, the analysts cut their average 2013 gold price forecast to $1,545 from $1,610 and their 2014 average to $1,350 from $1,490. Goldman also set a $1,450 year-end target for 2013 and a $1,270 year-end target for next year.
The logical question which follows from this is whether we should be fading the Goldman call, as they might be trying to get the “muppet” retail investors to panic sell their gold after a steep decline, before buying it up.
Updating our weekly look at the ETF for gold, the key $148 level has yet to be breached. However, the chart remains sloppy, as you would expect in a downtrend.
Thus, any attempts to fade Goldman Sachs by going long gold here should likely use that relatively tight $148 area as a stop-loss.
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the downgrade was made during the overnight right? i see it hitting newswires around 2:30am… Fed minutes anyone?
good point
here’s to Jake..
*I have little regards for Sly Lloyd B. and his ‘Golden Slacks’.
(no position other than to be on the side of the man with conviction.)
I maintain my bearish stance on gold, due to logically favorable alternatives!
and you’ve been nail-on-head correct
gold is entangled with central banks quantitative easing. likely they prefer lower gold prices. higher gold would signal instability and confirm currency devaluation leading to political pressure to stop inflating away debts. lower gold price is like proof there is no need for hard assets, inflation is not an issue etc.
i find that just as funny as to why the likes of dltr and dg are being suppressed by the algo’s.to make it look like there arent 110 million folks out of work.if jcp just had half the traffic that dltr has then…….ackerman wouldn’t be crying.@ chive.who gives a crap bro,they can suppress gold and silver all they want.it’s just like telling someone that has owned apple @60 bucks to start worrying.just like folk who bought precious when no one gave a shit years ago…….worry? roflmao if you got at least 25 more years of life expectancy, than let them keep bringing it down,and i’ll keep stacking as i laugh.too bad the market has become what it is…….