Goldman Sachs See Short-Term Strength In Gold, Remains Long-Term Bearish

Published: Jan 27, 2015 14:29
Gold’s strong performance since the start of the year has caused Goldman Sachs to revise its short-term forecast but the bank still remains bearish on the yellow metal in the long-term.

Author: Paul Ploumis26 Jan 2015 Last updated at 03:10:55 GMT

(Kitco News) - Gold’s strong performance since the start of the year has caused Goldman Sachs to revise its short-term forecast but the bank still remains bearish on the yellow metal in the long-term, according to their latest commodities report.

In its report, the U.S. bank said that they expect prices to average $1,290 an ounce within the first three months of the year. They said that prices will be supported by the recent massive quantitative easing program in Europe and shifting expectations that the Federal Reserve will end up hiking interest rates later in the year.

The analysts said that disappointing manufacturing data, and low inflation will keep interest rates unchanged until at least September.

“Net, absent a reversal in the US and global recovery, we expect only limited further upside to gold prices despite the recent European and Swiss monetary shifts, as these are likely already largely priced in,” the report said.

Although prices will remain relatively supported during the first quarter of the year, prices should start to fall by the second quarter and the second half of the year. The bank’s 6-month and 12-month forecast are for gold prices to average $1,270 and $1,175 an ounce, respectively.

The bank expects gold prices to end 2015 at $1,190 an ounce and $1,000 an ounce by 2016. Goldman Sachs has lowered their 2016 average gold price to $1,050 from $1,200 an ounce.

“Importantly, while our near-term conviction for lower gold prices has declined, our confidence in lower gold prices for longer has increased on the back of the lower expected inflation in coming years and the deflationary impact on gold’s mining marginal cost of production of lower energy prices, a stronger USD and the shift to the Exploitation phase of commodity supply cycle,” the analysts said.

Courtesy: Kitco News

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Feb 6, 2026 23:56
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
Feb 6, 2026 23:56
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Feb 6, 2026 23:54
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
Feb 6, 2026 23:54
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Feb 6, 2026 23:47
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
Feb 6, 2026 23:47
Goldman Sachs See Short-Term Strength In Gold, Remains Long-Term Bearish - Shanghai Metals Market (SMM)