MAJOR U.S. investment bank Goldman Sachs has today issued a new report on gold investing, advising clients to sell gold short on the futures market.
Claiming that the "turn in gold prices [is] accelerating", Goldman Sachs' commodity analysts advise closing the bullish position in US gold futures they recommended in Oct. 2010.
They also advise opening a "short" position on the Comex gold futures exchange, with a price target of $1450 per ounce and a "stop-loss" – in case the trade goes wrong and gold investing prices actually rise – at $1650.
The shortest-dated gold futures contract closed New York trade on Tuesday at $1581.80 per ounce.
"Despite resurgence in Euro area risk aversion and disappointing US economic data," says Goldman Sachs' note, "gold prices are unchanged over the past month, highlighting how conviction in holding gold is quickly waning."
Gee if I didn't know any better I would swear Goldman need to cover its own shorts.
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