ZERO HEDGE reports
The key catalyst for Goldman’s suddenly cautious view on gold (which still has a $1,690 price target): the end of QE2 in June 2011. So, presumably, when QE 3 is announced in May in order to allow the continued monetization of $4 trillion in debt issuance over the next 2 years, that should be very bullish for gold, yes? Irrelevant: Goldman has become just one more glorified Jim Cramer: pumping anything that is green, and dumping anything in which there is even a modest (CME margin hike driven) correction.
From Jeffrey Currie’s just released report, “The cyclical commodities join the rally as gold falters.”
That said, the firm is still recommending a long gold (and platinum) trading recommendation:
And here is the summary outlook/key issues on key commodities:
WTI (target $105.50/bbl):
Brent (target $103.50/bbl):
Incidentally, this should make for a great compression arbitrage. If Goldman is even remotely correct, going long WTI and short Brent should generate a substantial IRR.
RBOB (target $2.62)
NYMEX Nat Gas (PT $4.50/mmBtu)
LME Copper (PT:$11,000/mt) ” better hope the “Cold Fusion” story is a hoax here..
Gold (PT: $1,690)
Silver (PT: $28.2)
Cocoa (PT: $2,4000/mt)
Much more in the full report:
Continue reading here:
Goldman Goes Gaga Over Cyclical Commodities, Says Gold Run Is Ending As QE2 Comes To A Close (Full Commodity Update)
Tagged with: currency, yields