Skip to comments.Goldman Hikes Its 12 Month Gold Price Target From $1,735 To $1,830
Posted on 08/07/2011 8:59:35 PM PDT by Nachum
The first of many gold price upgrades is here, as Goldman's David Greely finally catches on to what has been all too obvious to anyone with a frontal lobe: "Gold prices hit a new record high last week, closing at $1,663/toz on August 3. Despite this rally, the rise in gold prices has continued to lag the plunge in US real interest rates, with 10-year TIPS yields trading below 30 bp. With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively." Next up: everyone else.
Gold prices rise to record high as 10-year US TIPS yields plunge to a record low
Gold prices have rallied strongly since the beginning of July, rising 12.2% to a record (nominal) high close of $1,663/toz on August 3. While the rise in gold prices has been sharp, it continues to trail the fall in US real interest rates. In particular, 10-year US TIPS yields plunged from 77 bp to a mere 24 bp over the same period, according to the US Federal Reserve. Consequently, despite this rally to yet another new record (nominal) high, we believe that gold prices will continue to rise as:
(Excerpt) Read more at zerohedge.com ...
Well they have already hit their 3 month target and might hit their 6 month target soon. Gold at 1699 right now.
Sigh. That’s a confidence boost for the dollar. /s
I'm betting it will hit 2K before year end. I'll sell all my single earrings, unwanted jewelry, and make a bundle.
Wish I could have invested in it when it was $1,300 an ounce, but every appliance decided to keel over this year, including 10K for the HVAC, plus a new roof and fence. Ugh!
Is that before or after the bubble bursts? /s =.=
With what? We are selling treasuries with no return now. All we are selling is the notion that bonds are safe. Well, we just got downgraded brother.
Did you catch how England is blaming us for their rising commodity prices because of QE? Of course, no talk of their own rounds of QE. The Bank of England’s posting of record profits was met with 2-parts scorn and 1-part laughter, since it was all “electronic” QE money.
Love your tag line, BTW.
This weekend while the prices are still decent.
I have a bet that it will hit $80
I could be full of it, but that’s the wager.
There are a lot of big boys raising the margins
Wish I had bought some more, too. Going to be interesting to see how much it goes up tomorrow. Gander Mountain had .22 LR for $3.99 for 50 rounds today.
I knew I should have gone shopping today! Looks like things will be ugly tomorrow.
I went to my local coin dealer yesterday and he told me people were lined up outside his door when he got there in the morning.
He had a lot of stuff when I went there last week but he sold out and all he had left by the time I got there was a old scratched up Ag Eagle.
Tomorrow is going to be fun
Spot gold just hit 1700 a few minutes ago.
America is exporting its inflation.