Gold to tank in 2014: Goldman Sachs

I think I will agree with them.

Still holding target of 1038

And now we wait for the "sell every rally" call throughout 2014.

In GS we trust,
just don't have them over for dinner...

Hahah you read that too? Clearly they phished him out.

Selling the rallies worked like a dream 2013. Drivers for lower gold are still in place. When they no longer are, gold back to 1500-1600 IMO

Lol, yeah as the article says, they harpooned the whale.
If be bullish DOW if I traded it but I still think QE will be fuelling it for sometime to come, so it won't surprise me to see gold and stocks rise in tandem this year.
I'm not so optimistic as the Fed on the employment structure (although even Ben noted its fragile nature despite the "official" drop in employment.
There was an interesting article highlighting the terrible participation rate and that around 90 percent if even the latest abysmal number was retail with health sector dropping.
It will be an interesting year though, I expect the Fed to dislocate a rib as it backflips this year.
I'm on holidays in the countryside so my internet connection is shit, apologise if I can't continue with discussion, it takes 5-10 mins just to load a single FF page.
[email protected],

very strange, indeed - gold is positioned for a huge breakout today and this to receive this article is a coincidence?

Nope because GS has been pushing their gold thesis for months as well as versions of this article. I think equities will roll because the economic data won't support it. The whole reason the markets are where they are at (outside of Fed) is the assumption of this overly optimistic growth would happen. Still yet to be seen

Disn!t they say in 2011 that gold will rise 2200 that year?
Bunch of liars!

Goldman raises gold price forecasts
Mon Aug 8, 2011 3:16pm IST

REUTERS - Goldman Sachs raised its gold price forecasts, citing the fall in U.S. real rates and intensifying sovereign debt issues in both the United States and Europe.

"We expect gold prices to continue to climb in 2011 and 2012 given the current low level of U.S. real interest rates," the Wall Street bank said in a note to clients on Monday.

The 10-year U.S. TIPS yields are at an historic low and a diminished outlook for U.S. economic growth suggests U.S. real rates will remain lower for longer, the bank said.

While the level of U.S. real interest rates is viewed as the primary driver of gold prices over the medium term, continued strong monetary demand for gold from both gold exchange-traded funds and central banks creates an upside risk to its forecasts, Goldman said.

The investment bank raised its three-month gold price forecast to $1,645 per troy-ounce, from $1,565, still short of all-time high for spot gold above $1,715 an ounce on Monday.

It also upped its six-month and 12-month forecasts to $1,730 per troy-ounce and $1,860 per troy-ounce, respectively.

Goldman continued to recommended initiating a long COMEX December 2011 position.

Gold has gained more than 20 percent so far this year.

I think that the top is in on the markets. I expect gold to rally about 25% and I would not trust GS at all.

They have zero interest in helping you unless they make money out of it.

who's saying the truth?

Germany's Commerzbank is bullish on gold for 2014...seeing $1,400
Berlin (Dec 7) Commerzbank’s commodity strategists said on the subject this morning as they look to 2014 — they expect gold’s price to retake $1,400 by the end of next year:

The two most important negative factors for investment demand this year – higher real interest rates and the upward movement in the equity markets – should become less important in 2014. Our economists expect the US Federal Reserve to start scaling back its bond purchasing programme from March/April. As soon as the first step has been taken, the associated uncertainty should be dispelled and the pressure on the gold price should ease. For bond purchases can be expected to be reduced gradually and expectations about an interest rate hike by the Fed to be kept in check verbally. This could prevent any sharper rise in longterm interest rates. Inflation rates are also likely to increase again from their currently very low level, thus preventing a further rise in real interest rates next year. Nor is it realistic to expect the US equity market to move up again by 25% in 2014 on the back of a less expansionary US monetary policy.

I trust in this last version

I don't trust Goldman researchers as far as I can throw them.

After all, if they're willing to scam their own elite customers out of millions, then there's certainly no reason to believe they would treat the general public any kinder.

However in this instance I have no choice but to agree with them, as my own analysis keeps screaming $1050, no matter how many times I go over it.

Why they would actually disseminate accurate forecasts to the general public this time round; well I have no idea.
Perhaps it's an attempt at reverse psychology......

GOLD to tank in 2014 so that they can buy cheap..

I think they are right. I also came across a Yahoo article explaining Gold's drop from a fundamental perspective. Did a bit of re-searching and I came across this technical perspective, which I think is quite valid which explains why Gold's rally is not ready yet.

http://tradingedge.eu/studies/83-gol...ivergence.html

and the fundamental perspective: http://finance.yahoo.com/blogs/break...215654437.html

not necessarily...Gold is related to indices like dow jones and the USD, so technically if usd and indices go down, GOLD goes up ....With Bitcoin stocks in the market, i think Gold will have some shorting opportunities as well tough

As usd is still strong, i think selling the eur/usd and buying usd/chf would be better

i think their opinion of stop loss for Gold to be near 1050-1000 ...Take profit should be around 1300-1350 for Gold

GS is planning to buy even more gold. They as many other Bankers, prepares for the USD collapse. The next step will be a new gold standard. GS are fully aware of that as an possible scenario.

GS=BS
;-)

i agree with them

USDCAD bullish long till 1.11 next week as per Goldman Sachs forecast

900$ silver 7$ by the year end .. 1050 it's a bull shit.just to let the people buy at this level.

What a crock of sh!t - they spew this garbage while they buy every dip and then come out with a conveniently revised forecast.

EXACTLY!!!

Any firm that refers to it's clients as "muppets" most probably speaks with forked tongue..... IMHO

Where's the breakout?

Few Months back when GOLDMAN SACHS raised projections 1.6800 for GBP/USD by the year end (2013) , 1.3900/1.4000 FOR EURO/USD -----No body believed them.

No body needs to believe them . Nor is this their REQUIREMENT . That's just their own viewpoint . And everyone may employ one s own TOOLS.