Goldman Hikes Its 12 Month Gold Price Target From $1,735 To $1,830

Zero Hedge ^ | 8/711 | Tyler Durden

[Nachum]

The first of many gold price upgrades is here, as Goldman's David Greely finally catches on to what has been all too obvious to anyone with a frontal lobe: "Gold prices hit a new record high last week, closing at $1,663/toz on August 3. Despite this rally, the rise in gold prices has continued to lag the plunge in US real interest rates, with 10-year TIPS yields trading below 30 bp. With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively." Next up: everyone else.

Note summary:

Gold prices rise to record high as 10-year US TIPS yields plunge to a record low

Gold prices have rallied strongly since the beginning of July, rising 12.2% to a record (nominal) high close of $1,663/toz on August 3. While the rise in gold prices has been sharp, it continues to trail the fall in US real interest rates. In particular, 10-year US TIPS yields plunged from 77 bp to a mere 24 bp over the same period, according to the US Federal Reserve. Consequently, despite this rally to yet another new record (nominal) high, we believe that gold prices will continue to rise as:

[mylife]

NE Tx 50 mi NE of Dallas

[TheWriterTX]

Hang tight, Terry. You're already ahead of the game. You've got food, guns, ammo, and God. Start talking, I mean seriously talking, with your friends and neighbors. It's not enough to prepare alone...others have to be with you.

That way, if you can't head for the hills, you can stand your ground with a group to support you.

[editor-surveyor]

Gold is vibrating, +/- a couple of bucks, at the highest rate ever.

[jpsb]

5% is not to terrible, dow futures holding steady at -281, gold holding at 1700 so maybe tomorrow will just be a bad day and not the end of the world as we know it. But then there is still Europe to come on line, oh well.

[Terry Mross]

You’re already “in the hills”. I’m in the Houston metro area. Only 30 miles from downtown.

[mylife]

[Terry Mross]

Good advice.

mylife, at least I’m on one of the “good” sides of town.

[jpsb]

Good idea, I am going shopping tomorrow too.

[Terry Mross]

What I mean is not near Sheila Jackson Lee’s district.

[mylife]

Naw, I am in the plains, but the hills are just 200 mi away in Arkansee

[Terry Mross]

Yep. Back up over $1702

I’ve got to go to bed. Maybe wake up in the morning and this will have all been a bad dream.

[jpsb]

Seoul Composite is getting hammered down 7.5%

[Terry Mross]

Rural Arkansas is where I was raised. That’s where I plan on running to one day soon. If travel isn’t restricted.

I just remembered. I’ve got a stress test Tuesday. This crap can’t help that.

[TheWriterTX]

Hang tight, Terry. You're already ahead of the game. You've got food, guns, ammo, and God. Start talking, I mean seriously talking, with your friends and neighbors. It's not enough to prepare alone...others have to be with you.

That way, if you can't head for the hills, you can stand your ground with a group to support you.

[Terry Mross]

My wife said “The U.S. is the last dominoe in the line.”

[Atlas Sneezed]

Gold wont mean s*** if you cant keep it.

---

Language please.

Why would any rational person be more worried about “keeping” gold than not owning it in the first place?

[Terry Mross]

What he’s saying is you need a way to defend it if you own it. ammo

[mylife]

BTW the plains here are under extreme duress.
The drought is killing the ranchers. They cant afford to feed the cows so they are selling them off for slaughter.
Thats going to drive the price of beef down for a while temporarily.

I am going to buy a load of tinned beef when that happens.

I suspect commodities will just go higher and higher.
Crops are failing all over the place
Hay is $80 a roll

[jpsb]

True, the markets are reacting to fear of a recession in the USA and a possible collapse of banking in Europe. I am very curious what the European markets are going to do. Asia except for depending on exports is in pretty good shape. USA except for recession is in OK shape, Europe not so much.

[Terry Mross]

Last Sunday the wife and I took a little country drive. Went to Bryan/College Station, then over to Caldwell then back to Houston. Saw one pasture with cattle in it. Lots of hay. All the fields are parched. 97% of Texas is in extreme drought conditions.