Goldman Sachs Says Gold Could Hit $1,000

After a one-day reprieve, gold prices are on the defensive again, trading below $1,100 an ounce, and one major bank expects the weakness to continue.

Wednesday morning, August Comex gold future fell more than 1%, last trading at $1,087.80 an ounce, down more than $15.70 on the day.

In an interview with Bloomberg Tuesday, Goldman Sachs’ Jeffrey Currie said that he expects gold could eventually fall below $1,000 an ounce as the “worst is yet to come.”

“With the more positive outlook on the dollar, and with debasement risk starting to fade, the demand to use gold as a diversifying asset against the U.S. dollar becomes less and less important,” said Currie in his interview with Bloomberg.

“There is a probability that the market trades below $1,000 this year given our broader commodity view,” he added.

Currie came to the forefront in the gold in 2013 when he warned investors to sell gold. Some market analysts noted at the time that Goldman Sachs’ negative outlook on the yellow metal helped create the biggest decline in the precious metal in 30 years.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza