Posted on 02/25/2013 1:27:43 PM PST by blam
GOLDMAN: The Gold Market Selloff Is About To Accelerate
Matthew Boesler
February 25, 2013, 3:57 PM
Last week, gold came under heavy fire from the sellers. The shiny yellow metal fell below the $1600 mark for the first time in a while, and it even hit the "death cross" – a technical indicator formed when the 50-day average gold price dips below the 200-day average – indicating rapidly deteriorating sentiment.
After all of that, gold is rebounding nicely today. Right now, it's trading up around 1.4 percent against the dollar at $1595 per ounce.
Nonetheless, Goldman Sachs, which has put out some of the most bearish calls on gold we've seen from the Street recently, is lowering its price targets on gold again after last week's selloff.
The working thesis of the bank's commodity team is that real interest rates have been driving higher gold prices. Now that those real rates have started to normalize, they think the jig is up for gold.
However, something else has happened in the gold market very recently that has Goldman piling on the bad news.
Goldman commodity analysts Damien Courvalin and Jeffrey Currie write today in a note to clients that an important shift in the market not driven by real rates has also occurred (emphasis added):
Interestingly, the last leg lower in gold prices over the past two weeks has occurred with real rates remaining unchanged. As a result, our modeling of COMEX net speculative positioning suggests that the current level of net length is consistent with a 10-year TIPS yield closer to -40 bps rather than its current -55 bps level. Further, our modeling suggests that the current level of COMEX net length is too low relative to real rates even when taking into account that expectations
(snip)
(Excerpt) Read more at businessinsider.com ...
This was written before the news regarding Italy today....
Let’s see how this impacts....
If gold hits 1500 I’m buying.
Undoubtedly another Goldman Sachs department is loading up on gold at this very moment. Gold futures, GLD, gold mines what have you
goldman... the same group that pimps for soros... who have been telling people to sell while buying for him
yea, i’m thinking now’s the time to buy... something big is on the way in the next few weeks and i’d wager soros and crew are behind it
A five percent drop almost straight down that ends the day before option expiration leads Goldman says that’s just the start. Even for Goldman, that’s a pretty obvious lie.
I called my broker to convert all my liquid assets into gold and he told me to hold out enough to pay for the microscope it will take me to see it. I get no respect.
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