Saturday, September 14, 2013

Goldman’s Currie – Gold Heading Lower due to Improving U.S. Economy

Currie Jeff Goldman raiderGoldman Sachs head of commodities research Jeffrey Currie makes the case for lower gold prices into 2014, saying that Goldman’s target is $1,080 the ounce. 

This is the same Jeffrey Currie that publicly called to short gold ahead of the April 12 smash for gold. 

Currie says that the key for his negative call is confirmation evidence of the improving U.S. economy. If the data starts to improve that is what Currie thinks will ignite a new down leg for gold. 

Ergo, we posit that should the economic data in the U.S. show anything but improvement we would expect Mr. Currie to change his forecast then. 

He apparently stopped short of suggesting that traders short gold this time. 

Interestingly, Mr. Currie's appearance on Bloomberg happens to coincide with an increase in hedge fund net selling of gold futures in the most recent CFTC commitments of traders data as of September 10. 

That should surprise no one.  Goldman Sachs is well known for jawboning its book. 

Source: Bloomberg

http://www.bloomberg.com/video/goldman-sees-risk-of-gold-below-1-000-dYDi6HrfTfK1~pUfLTtX_A.html


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Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

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