Although gold has more than reached its price target, Goldie continues to recommend shorting gold saying....
“Although gold has now traded below the $1,450/toz target embedded in our short recommendation, we are maintaining our short as we argued last week that prices could decline more than we initially thought as positioning is stretched and the momentum is to the downside,” Goldman Sachs said in a note today.
“As a result, we are now lowering the stop to $1,400/toz (which locks in a potential gain of 12%) while we wait for evidence of a bottom, though we are not changing our price forecasts now,” they said.
The analysts at Goldman sounds like they got their ruler out and extended the line on in the technical analysis. All joking aside, they may be (probably will be) right in the short-term, as the gold complex gets caught up in the liquidity event that is ongoing. However, it is my opinion that as the Fed and other central banks continue to hold the mentality of "take all the money you want and don't worry, will make more.", long-term investors will be rewarded.
“Although gold has now traded below the $1,450/toz target embedded in our short recommendation, we are maintaining our short as we argued last week that prices could decline more than we initially thought as positioning is stretched and the momentum is to the downside,” Goldman Sachs said in a note today.
“As a result, we are now lowering the stop to $1,400/toz (which locks in a potential gain of 12%) while we wait for evidence of a bottom, though we are not changing our price forecasts now,” they said.
The analysts at Goldman sounds like they got their ruler out and extended the line on in the technical analysis. All joking aside, they may be (probably will be) right in the short-term, as the gold complex gets caught up in the liquidity event that is ongoing. However, it is my opinion that as the Fed and other central banks continue to hold the mentality of "take all the money you want and don't worry, will make more.", long-term investors will be rewarded.
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