Selling Gold On Goldman’s Call?
Before you get too carried away you might want to have a peek at George Costanza’s book and do the opposite to what the ‘Vampire Squid’ recommends….
The ‘Vampire Squid’ has released its price targets for the yellow metal, forecasting it to rise to $1,825 over the next three months, then slide to $1,805 in six months, and finally to $1,800 toward the end of 2013; Goldman sees gold averaging $1,750 in 2014.
Nomura on the other hand recommends investors buy the yellow stuff.,.
As an asset, gold has shown a pretty strong negative correlation with the value of the U.S. dollar, which in turn goes down as the Federal Reserve prints more Benjamins. Nomura’s economists believe, along with several of their colleagues, that the Bernanke Fed will replace Operation Twist (which didn’t expand the balance sheet) with more asset purchases (quantitative easing, or QE) early in 2013.
You can read the rest here ... (Forbes)
Spot Gold is presently sitting at $1690, after falling to $1686 yesterday. Support below is seen at yesterday’s low and $1680 ahead of the 200 day MA at $1662. Nearside tech resistance is at $1700/1701 which also houses the 100 day MA at $1700.70 ahead of $1708.00