“We see current prices as a good entry point to re-
establish fresh longs,” analysts Damien Courvalin and Alec Phillips wrote in a
Jan. 18 report. The bank reiterated a three- month target of $1,825 an ounce,
as well as a forecast for prices to weaken in the second half as the U.S. economy rebounds.
Gold fell 5.5 percent last quarter, the worst performance
since 2008, on expectations for a recovery and potential end to central bank
stimulus in the U.S.
An advance to $1,825 would be consistent with rallies into debt-ceiling
decisions, the analysts wrote. Since 1960, Congress has raised or revised the
debt limit 79 times, according to the Treasury Department.
“The uncertainty associated with these issues, combined with
our economists’ forecast for weak U.S. GDP growth in the first half of 2013 following
the negative impact of higher taxes will push gold” to the three-month target,
they wrote.
P.S. For those readers with short term memory problems, gold, which rallied for a 12th year in 2012, traded at
$1,687.90 an ounce on the Comex at 9:49 a.m. in New York . Holdings in exchange-traded
products reached a record last month, data compiled by Bloomberg show.
Most-active prices last traded above $1,825 an ounce in September 2011….
Read all about it at http://www.bloomberg.com/news/2013-01-21/goldman-forecasts-gold-rally-amid-debt-ceiling-confrontation.html
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