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17 September 2010 at 20:20 IST
Goldman says over to $1,300 gold could accelerate
By Allen Sykora of Kitco News
(Kitco News) - Goldman Sachs says there are some potential factors that could speed up gold’s rise to the investment bank’s six-month target of $1,300 an ounce.
However, Goldman also lists a long-term risk. “For gold, we maintain that the low U.S. real interest-rate environment will allow prices to continue to move higher, with a 6-month target of $1,300/oz,” Goldman says.
“Further, we expect that a resumption of quantitative easing would likely accelerate the move to our 6-month price target and provide upside risk to our forecasts.”
Additionally, Goldman says, while speculative net length in Comex futures is approaching its highest level of the year, gold ETF holdings rose only “modestly” in August and are flat over the past three weeks.
This suggests “gold prices could move faster to our 6-month target should gold-ETF buying come back to the market following the recent rally to a new record-high gold price.” Goldman lists a 12-month forecast of $1,365.
Still, Goldman cites a “considerable” long-term downside risk, should the Federal Reserve tighten monetary policy earlier than expected.
By Allen Sykora of Kitco News; asykora@kitco.com
NCDEX POTATOFAQAUG12 17 August 2012
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