Goldman Sachs predicts that gold price will go down

Goldman Sachs says the price of gold is going down down down. Can they be trusted? Or is it a trick??


"According to the Wall Street Journal, Goldman Sachs (NYSE: GS) mentioned in a memo to investors last week that their forecast of the price of gold in 2013 would be slashed from $1810/oz to $1600/oz. This comes after the firm had already predicted a lower turn for gold in the second half of the year, although it was not expected that the shift would happen this early on in 2013.

Perhaps as a result of the news, global gold exchange-traded funds plummeted last week, suffering from an outflow larger than has been seen since January 2011. Before this occurred, the price of the metal had risen above $1600 as a result of the continuation of the central banks' bond-buying programs.

Up until recently, speculation over the price of gold had been just that: speculation. The slashing by Goldman Sachs, however, comes as a result of the fact that U.S. interest rates are increasing, coupled with the recent drop in the price of the metal. A decline in price has been affecting sales of the metal since October, although the price of gold has fallen sharply in just the past two weeks.

[link to www.wealthdaily.com]