Reuters
reported Thursday that Goldman Sachs (
NYSE: GS) is sticking to its average forecast of $1,413 for an ounce of gold in 2013 as it does not see sharp reductions in U.S. Federal Reserve stimulus, after fears of such cuts drove bullion prices to near three-year lows recently.
One would have to consider this a rather bullish outlook on gold given its recent price of $1330 as well as some of the other views on the Street.
Wait a minute – isn’t this the same Goldman that told its clients to short the precious metal three months ago, contributing to the sharp selloff in the spot price back in April. The reasoning back then:
"Despite resurgence in euro area risk aversion and disappointing U.S. economic data, gold prices are unchanged over the past month, highlighting how conviction in holding gold is quickly waning," said Goldman Sachs analysts Damien Courvalin and Jeffrey Currie in the note that was reported by CNBC.
With Goldman’s changing viewpoint on gold, one cannot help but think of those conspiracy theories that believe the U.S. government along with the big banks, to which Goldman Sachs is arguably its most influential member, are out to suppress the price of the precious metal.
Goldman’s only concern seems to be making money for its clients, whether it be on the short or the long side of the trade.
By the way, in the same note issued on Wednesday Goldman also said it expects gold to average $1,165 an ounce in 2014 as previously forecast, adding that the price could reach $1,050 by the year-end.