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%?
i think the Fed will act in June, July at the latest.
Goldman is uncivilized?
The FED is controlling the economy by manipulating the treasury prices, and I still believe the banks create naked shorts for both gold and silver.
I own gold and silver because our Federal government working in conjunction with the big banks creating the biggest ponzi scheme in history. At some point we will all fail to believe paper money has any value when the treasury can print hundreds of Billions of dollars and give it to the banks for reserves and playing monopoly with our money. The fed creates $$ from nowhere effectively diluting the value of our dollar.
The federal government refuses to correct the trillion dollar deficit. Doing so would plunge our economy into a Greek situation. They have no solutions except print money and create 1920 s crash.
Buy gold, commodities and real estate. These have value. Cash in the bank and treasuries are for suckers. Almost zero interest when inflation is trucking along at 3 or 4%. The government must be sitting drinking beers on a night laughing about how stupid we are buying treasuries. The investment community should refuse to buy treasuries and DEMAND a real return on investment.