Goldman Sachs Group Inc.?says it’s time for you to bet against gold as bullion’s rally to the highest each year isn’t justified,?backing the bearish call?with a comment from the former U.S. leader in a are convinced that was issued, appropriately enough, on Presidents’ Day.
Gold will slump to US$1,100 an ounce in three months and US$1,000 an ounce in 12 months, analysts including Jeffrey Currie and Max Layton wrote within the report?that was dated Feb. 15 and received on Tuesday. It was headlined having a remark from former U.S. president Franklin D. Roosevelt.
There’s “absolutely nothing to fear but fear itself,” the analysts entitled the seven-page note, channeling comments from Roosevelt’s 1933 inauguration when the U.S. economy was being ravaged by the Great Depression. “It’s time to sell the fear barometer,” the bank said, and recommended shorting gold.
Related
- Gold is back fashionable with investors, but the real question is, does this rally have legs?Taseko Mines Ltd. suing Ottawa for blocking growth and development of $1.5-billion gold and copper depositGold miner Kinross Gold Corp reports big quarterly loss but offers solid 2016 guidance
-
-
-
Gold jumped to the highest since February 2015 a week ago as sinking equity markets, weaker oil prices, and diminished bets for higher U.S. borrowing costs spurred haven demand. Prices were further boosted by the spread of negative interest rates and concerns about a crisis in Europe’s banks. Goldman said it still expected rates to rise, putting the chances of U.S. recession just 15 to 20 percent, and rejected the notion that a rerun from the crisis was likely.
“We feel that these new fears, like past fears, aren’t justified,” the analysts wrote within the e-mailed report, which didn’t cite the president’s name alongside the headline. “Systemic risks stemming from the collapse in oil and commodity costs are extremely small.”
Gold for immediate delivery rose 0.4 percent to US$1,214.30 an oz by 12:30 p.m. working in london. It reached US$1,263.48 on Feb. 11. Goldman’s targets for bullion are the same as those provided by the financial institution in a note a week ago, when it said that U.S. rates of interest will still increase.
Bloomberg News
