Aluminum Spot Inventories in China on July 15th   

LONDON, Jul 15, 2010 (Dow Jones Commodities News via Comtex) -- U.S. investment bank Goldman Sachs Group Inc. (GS) Thursday raised its 12-month forecast for gold by a modest 1.5% to $1,355 a troy ounce, citing a prolonged period of low interest rates and persistent concerns over European sovereign debt.
Goldman said it still believed gold prices will decline beyond 2011 once the U.S. Federal Reserve tightens monetary policy and recommended producers consider selling their production forward.
The bank raised all its forecasts for base metals except for zinc, which it slashed by 18% to $2,225 a metric ton.
Slowing growth in Europe and China, as well as strong Chinese zinc production, will keep the market in surplus longer than expected, it said.
Goldman raised its 12-month forecast for nickel by 167% to $20,000/ton. Rising demand will more than offset the resumption of nickel production at Vale SA's Ontario operations, where a one-year strike ended last week, it said.
The bank lifted its forecasts for copper and aluminum 1.4% and 2.5% to $8,050/ton and $2,225/ton, respectively. Goldman said copper remained its favorite metal for long positions as inventories continue to decline and the supply deficit should grow this year and next.
Goldman raised its silver forecast 1.3% to $22.60/oz, largely due to its improved outlook for gold. 
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