Home / Metal News / Goldman Sachs continues to remain bearish on Gold

Goldman Sachs continues to remain bearish on Gold

iconMar 9, 2016 13:47
Source:SMM
Goldman Sachs is maintaining a bearish view on gold.

UNITED STATES March 09 2016 10:38 AM 

NEW YORK (Scrap Register): Goldman Sachs is maintaining a bearish view on gold, reiterating its outlook in a report saying that a recent surge in commodity prices generally is not sustainable. 

Goldman concedes its short gold recommendation, which it opened in line with its $1,000-per ounce 12-month forecast, is currently at a loss. 

Still, Goldman said, “This gold rally was driven by a lack of conviction in divergence in U.S. growth as a weak U.S. dollar has been highly correlated with a higher gold price.”

Goldman believes this realignment view of weak global growth is not supported by the U.S. data, which will likely reinforce higher U.S. yields, a stronger U.S. dollar and the return of divergence, particularly should strong U.S. consumer growth dissolve market fears regarding U.S. growth. This in turn will likely put downward pressure on gold prices towards their near-term target of $1,100 an ounce (current price is $1,265 an ounce ).”ac


Goldman Sachs
precious metals prices
gold prices

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All