by Lawrence Williams, MineWeb.com
In a new interview with CNBC, Goldman Sachs Head of Commodities Research, Jeffrey Currie, was nothing but consistent in his 2014 gold price forecast and is sticking to his $1050 target for gold by end 2014 – a figure he first came up with in the first half of last year. Thus he feels that gold’s relatively strong start to the current year is likely to be shortlived and, as in 2013, gold will likely shed value throughout 2014.
Now, the principal problem for gold bulls with Currie’s forecasts is that they can tend to be self-fulfilling prophecies given the God-like status of Goldman Sachs in financial markets. Currie famously told clients to sell gold short in April last year – just two days before many big gold investors seem to have followed this advice and the gold price plunged. Later in the year, in October, Currie told a conference panel in London that gold had to be a ‘slam dunk sell’ with the U.S. Fed likely to begin its tapering programme and reduce its $85 billion a month bond buying programme once the then prevalent budget impasse ended. This too generated gold price weakness, although perhaps not to the extent of his earlier ‘short gold’ call.
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