This report came out today from GS, via Bloomberg:
Goldman Sachs Group Inc. (GS) stood by its forecast for a rally in gold this year, saying that the precious metal will advance to $1,840 an ounce over six months as the U.S. central bank embarks on a third round of stimulus in June.
Gold remains the “currency of last resort,” according to analysts led by Jeffrey Currie in a report dated yesterday, the same day that the price sank to the lowest level in four months as Europe’s escalating debt crisis boosted the dollar. The restated gold forecast implies a 16 percent surge. …
“The case for higher gold prices remains in place,” the analysts wrote. “U.S. economic and employment data has now disappointed for several weeks, European election results point to further stress in the euro area, while anecdotal data suggests that physical gold demand remains resilient.”
The U.S. Federal Reserve will announce additional monetary easing when policy makers meet next month, Jan Hatzius, chief economist at New York-based Goldman, predicted in a report on May 8.
Another big firm jumps on the Daily Capitalist bandwagon. Why didn’t they see this 9 months ago when we had forecasted this. Actually we had forecasted QE3 in May, 2011 (see my Fox Business News appearance).
GS also reported that they only had one losing trading day last month. How could they lose by borrowing from the Fed at 0.16%?