Intchains Group Ltd V.ICG

Goldman Sachs Flip Flops On Gold

[Silverwhere]

...Even The Goldman Sachs Group, Inc. (NYSE: GS), which had been bearish on gold throughout 2015, turned bullish for a moment, and then it was bearish just a week later. This latest flip-flop by Goldman Sachs has many in the investment world rolling their eyes as the investment firm tries to win on both sides of the market.
 
... For example, in January 2015, as gold was rallying, Goldman Sachs upgraded its forecast to an average price of $1,262 in 2015, with an expectation that its price would rise in the near term. Shortly after that, gold prices tumbled. In July, Goldman Sachs issued a downgrade indicating that gold prices should fall below $1,000 by the end of the year. Immediately after that, gold rallied through the middle of October. After the price of gold started to decline, Goldman Sachs reiterated its downgrade in November. A month later, the price of gold began to increase, leading up to the January/February 2016 surge.
 
... Alongside that thinking is the more sinister theory that for Goldman Sachs to make money in its own trading account, its clients have to lose money. In other words, if Goldman Sachs’ forecasts direct its clients one way, it can make money by doing the opposite. With the massive amount of trading it can conduct in any one commodity, it can make millions on a brief directional shift when it knows investors will move in a certain way.
 
...If you are an individual investor who likes to trade in gold, you might consider doing the opposite of whatever Goldman Sachs’ short-term forecasts tell you to do.
 
 
Goldman Sachs Flip Flops On Gold
By Richard Best | March 26, 2016
 
https://www.investopedia.com/articles/investing/032616/goldman-sachs-flip-flops-gold-gs.asp