Goldman Sachs forecasts $1,940/oz gold, cuts commodities traders

The slow growth in the United States will most likely support gold prices to higher levels in 2012. Goldman Sachs has made 3-month, 6-month, and 12-month forecasts for gold and sees the metal rising to $1,940 within the next year. They also recommend a long term position for the metal.

Author: Dorothy Kosich
Posted: Friday , 30 Mar 2012
Mineweb

Goldman Sachs has reiterated its constructive outlook for gold prices this year and its 3-month, 6-month, and 12-month forecasts of $1,785 per ounce, $1,840/oz and $1,940/oz respectively.

"We acknowledge, however, that continued strong US economic data poses growing risk to our forecast for rising gold prices," said commodities analysts Damien Courvalin, David Greely, and Jeffrey Currie.

The analysts stressed they expected gold prices to climb "as subdued US growth reduces the market's expectation of real rates. Consequently, we recommend near-dated consumer hedges in gold through 2012."

"With gold prices expected to continue to climb through 2012, we find hedging opportunities less attractive for gold producers at this time," they advised.

Goldman Sachs also continued to recommend a long gold position. "Buy December 2012 COMEX Gold (initial value of $1,800.5/toz, current gain $318.13/toz)," the analysts suggested.

Meanwhile, Reuters has reported that at least 20 commodities traders have left Goldman Sachs in the past months. Goldman said the departures will not have an impact on its standing in commodities.

"We are not downsizing our commodities business, it remains a core part of our franchise," a Goldman spokesman told Reuters.

Goldman is believed to employ around 400 traders in its commodities division, which generated $1.6 billion last year, Reuters reported.

To see original article CLICK HERE

Follow Us

Share Page

Login

Get access to the latest trading information, tools to help your investing, and much more!

Login   Sign Up

Search

Weekly Charts

Current Spot Prices

Gold$1180.67
Silver$15.75
Platinum$1187.50

Special Offers

 
 
© 2012 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Logo are trademarks of Swiss America Trading Corp.
Where did you hear about us?
Roger HedgecockRay Lucia
Pat BooneMichael Savage
Bill CunninghamOther
iHeart Radio/Rush Limbaugh
×