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Gold gets a downgrade at Goldman Sachs, the firm lowering its 2013 end-of-year price forecast to...
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Wednesday, December 5, 2012, 8:59 AM ETGold gets a downgrade at Goldman Sachs, the firm lowering its 2013 end-of-year price forecast to $1,800/oz., and 2014 to $1,750. "We see growing downside risks ... the gold outlook is caught between the opposing forces of more Fed easing and a gradual increase in U.S. real rates on better U.S. economic growth."
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"the gold outlook is caught between the opposing forces of more Fed easing and a gradual increase in U.S. real rates on better U.S. economic growth.""
*160 million Americans are working: 107 million of them earn $45K per year and less. Only 7 million Americans out of the entire population earn $100K or more per year.
*Closing in on 50 million Americans on food stamps. Number has not gone down one bit in 7 years and keeps rising.
*Number of people on Social Security disability the highest ever and rising as millions on their last hope to keep from starving.
The laughs just keep coming. Next we will hear about a reality TV show based on Mark Zandi's daily life as a government shill.
But we must all keep in mind that the folks at GS are "the best and brightest on Wall Street." At least that is what they keep telling anyone who will listen.
Goldman Sachs: gold will hit $1,730 within 6 months and $1,900 in 12 months. (please note that gold hit $1,800 within days after this Goldman Sachs' forecast)
2012-02-23 Goldman Sachs & Morgan Stanley gold price forecast for 2012 and 2013
Goldman Sachs maintains its previous prediction of 2012 average gold price of $1,940 despite lowering its return forecast for the broader commodity complex from 15% to 12%.
Right.
Smoke and mirrors to cover their bad calls.
What we are left with is a volatile futures market because of those holding disproportionally large positions amidst a rather thin market. In a sense they are trading against each other. Occasionally some of us out here can get in and ride a wave up/down on the swings.
What I will say is that the gold futures options market (and other metals futures options) is broken, doesn't follow standard pricing models, and affects the underlying adversely.
There are a number of occasions when the gold and silver prices walk off a cliff losing 1-2% for no apparent reason starting precisely at 11AM.
That is where the manipulation argument comes from.
Sadly, this is not an aberration but a longer term proposition due to the fat and happy welfare states they have created for the dumb as dirt slave to the state electorate. How they can ignore all the money printing and Gold safe haven impact with middle east unrest is beyond comprehension. And, then there is the massive middle class in Asia Central and SA that loves the metal. I think there are plenty of good reasons to buy more now while you can - equities aren't going anywhere. Top line sales for S&P has been going down EVERY year since 2008, a fact Wall Street conveniently ignores. They recently had a story on this critical stat as a "new worry"? New? It's only new because nobody on WS talks about it.
http://on.wsj.com/TJDbO8
I do see that GLD has fallen recently to a meaningful support level of around 162-163 and that implied volatility on the options has just started to creep up from a 2-year low.
It'll be a slow process, but I believe the return of confidence is what will make gold prices fall. A stronger US economy (hence global economy led by lower energy prices and US energy production) would go a long way to restore confidence.
That's my initial conclusion anyway, although admittedly I still in the learning phase...