Gold’s Cycle Seen Turned by Goldman Sachs as ETP Holdings Drop

[deminks]

http://www.bloomberg.com/news/2013-02-26/gold-s-cycle-seen-as-turned-by-goldman-as-etp-holdings-collapse.html

The cycle for gold prices, which climbed for 12 straight years, has probably turned as the recovery in the U.S. economy gathers momentum and investment holdings collapse, according to Goldman Sachs Group Inc., which reduced forecasts for the metal.

The bank cut its three-month target to $1,615 an ounce from $1,825 and lowered the six- and 12-month forecasts to $1,600 and $1,550 from $1,805 and $1,800. Goldman reversed an assumption exchange-traded products holdings will expand in 2013, analysts Damien Courvalin and Jeffrey Currie wrote in a Feb. 25 report.

(snip)

“The turn in the gold cycle has likely already started,” the Goldman analysts wrote in the report, after predicting an end of gold’s bull run in a Dec. 5 note. “The latest collapse in gold ETF holdings stands in sharp contrast to our assumption that ETF positions were likely driven by longer-term allocation rather than short-term trading.”

(end snip)

[TeamPooka]

1. aw, those gold bugs won't get a chance to go spend their silver shot at the Wal-Mart. lol