Goldman Issues Two Different Price Targets On Gold In The Same Day

Tyler Durden's picture

In a day when gold is surging to the highest level since the Trump election, what better way to hedge what happens next than to issue two separate price targets. We bring this up, because that's precisely what Goldman Sachs did today.

First, in a note discussing the relative merits of gold as a "currency as a last resort", and which eyed the suitability of the yellow metal as a hedge to an escalating North Korean crisis (discussed earlier), Goldman's chief currency strategist, Jeffrey Currie issue the following trade recommendation:

In coming months, the unfortunate aftermath of hurricane Harvey suggests that Washington is going to have to overcome their differences, pass spending bills, try harder to avoid a government shutdown and pursue infrastructure projects sooner than later. Our economists believe the probability of a government shutdown has declined further from their prior assessment of 35% and now put it at around 15%. As a result, we are maintaining our end-of-year gold price forecast of $1250/toz barring a substantial escalation in North Korea.

So on one hand Goldman is expecting a drop of nearly $100 in the coming three months. Fair enough, Goldman's bearish bias on gold has been duly noted on these pages in the past.

What, however, makes Goldman's stance confusing is that just a few hours after the Currie report was released, Goldman's chief technician issued an analysis which concluded something completely different.

In her daily "Today's Top Tech" report focusing on precious and base metals, Goldman's Sheba Jafari writes that "Gold, Silver and Copper are all three showing potential to continue higher" and adds that "Gold and Silver have targets in the area of 1,375-1,380 and 18.97." And some more details:

Gold Weekly – Currently above the top of a multi-month range that has been in place since April. The next big level in focus is 1,375-1,381. This includes an equality target from Dec. ’16, previous highs from Jun. ’16 and 38.2% retrace since ’11. Bottom line, the area around 1,375-1,380 will likely be critical. At this point, it seems reasonable to watch for signs of a top if/once reached. It’s also important to treat pullbacks as corrective/counter-trend. It’s not uncommon for these types of advances to develop in waves of three. The first big pivot support should be down at 1,300-1,296.

The report's conclusion on what gold will do next: "Biased higher. Target/turn neutral at 1,375-1,380. Add on pullbacks towards 1,300 and not below 1,296"

And that, ladies and gentlemen, is how you hedge your "recommendations" perfectly: should the gold surge continue, Goldman's technicians can pat themselves on the back for another correct prediction. Should gold tumble in the coming months, however, then Goldman's fundamental commodity team can claim it was right all along, and gold did precisely as Goldman said it would.

The only question we have is how will gold reach Goldman's "fundamental" target of $1,250 if Goldman's clients do as Goldman's technicians recommend and buy gold on any pullbacks lower toward $1,300...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ParkAveFlasher's picture

Why the surprise?  They just slosh the whole thing back and forth anayhoo.  Digitally slosh, that is.

Kotzbomber747's picture

The $1370-1380 price is possibly a trading target between now and the end of the year, whereas the $1250 is the end of the year forecast.

"as a result, we are maintaining our end-of-year gold price forecast of $1250/toz"


"The next big level in focus is 1,375-1,381."

remain calm's picture

Hey Goldman.....Go Fuck Yourself

Kotzbomber747's picture

ZH sensationalism at its finest. Read my previous comment.

FatTony7915726's picture

The Tribe is nuffin' but a den of thieves!

BaBaBouy's picture

""Goldman Issues Two Different Price Targets On Gold"" ...

How about they both Wrongo, Phys GOLD shoots to $15K ...

HowdyDoody's picture

Goldman - making shit up so you don't have to.


Kotzbomber747's picture

GS is talking about two different things, you dyslectic dumbfucks!

You inbred rednecks ever heard of the difference between an intra year price RANGE (i.e up to $1375-1380) and the end of the year TARGET (i.e. $1250)!?

0valueleft's picture

Does Lloyd let you brush your teeth before you leave or does he just have a $10 on the nightstand for ya? CNBC is short a shill, hurry bomber boy it's all sophisticated echos in that chamber. Wait I recognize a contrarian when I hear one, it's all echos here within the comments when it comes to GS, so I should apologize so as not to discourage you from furthering our enlightment....nah, you're a dick.

Pool Shark's picture

Is that forecast from Goldman or Gartman?

HowdyDoody's picture

"dyslectic"? - Kotzbomber747 is making shit up so you don't have to.

Kotzbomber747's picture

More drivel from the dyslectic National Enquirer, and the rednecks are having a field day drooling over any poorly researched BS story.

ilion's picture

FX broker Tickmill saying retail clients are still massively short XAUUSD so we still have some room to go up.

Anarchyteez's picture

So reporting what GS says is sensationalism ?

Go elsewhere.

Bay of Pigs's picture

He's a douchebag. Why he posts here is a mystery.

Kotzbomber747's picture

GS is talking about two different things, you dyslectic dumbfucks.

MANvsMACHINE's picture

Blah blah say something??

YUNOSELL's picture

And with Goldman's arrogance, they will probably claim both numbers are right and expect us proles to believe them

KFBR392's picture

you mean...hey fuck yerself

takeaction's picture

Target of $1375  Really?

ted41776's picture

i sold all my gold and silver and bought the fucking dip and burgercoin, it's the sensible thing to do

remain calm's picture

I sold my FUCOIN to Goldman

GoldHermit's picture

These guys are doing a 69... each one has their head up the other one's ass.

Implied Violins's picture

Quick...someone invent FARTCOIN so we can suffocate these bastards.

Son of Captain Nemo's picture

1975! Sure wish I could GO BACK given this topic!

Kotzbomber747's picture

The 1370-1380 price is a trading target, the 1250 is the end of the year forecast.

wisehiney's picture

One for you.

And one hundred for me.

ReturnOfDaMac's picture

Go boyz, shear sheep, mash muppetts, and get that stock back up to 225.

Bill of Rights's picture

Lol these fucks couldn't call a BINGO game.

Implied Violins's picture

Bullshit, they'd call "BINGO!" every fucking time and rearrange the board to match their numbers.

JBilyj's picture

Geopolitical storms will push gold up before it's slammed back down to 1,200...

Kotzbomber747's picture

Exactly, GS is probably talking about two different things; a $1375-1380 possible peak, and a $1250 end of the year target.

Bay of Pigs's picture

Who gives a fuck what they say.

You work for the Squid or what?

HowdyDoody's picture

Give the guy a break. He's "dyslectic".

JustPrintMoreDuh's picture

The price of gold will be whatever the fuck we say it is pleebs. -GS

moorewasthebestbond's picture

About as useless as the shit-and-piss ratings agencies that told us toxic MBS debt was AAA right up to the crash.

syzygysus's picture

Should I invest in BOHICACoin or BTFDCoin.  BOHICA seems better since Obama tweeted about it, but BTFD seems to have a little better codebase.

sharkalert's picture

Has Goldman come out and said anthing about China oil futures contract that will settle in Yuan? Goldman is stuck in a soon expiring paradigm. Oil producers will soon be able to settle tranactions in gold! A Real game changer!

sinbad2's picture

It's a "whatever you do, don't mention the war" kind of thing.

aloha_snakbar's picture

What does Gartman say...

guru69's picture

more important: what does that shill shepwave say

Money Mantra's picture

Where are all the shepwave guys bragging? Good call guys. The shlepwav gave 1377 Target in July. Goldman Sachs doesn't tell anyone til late. Losers

dogballs's picture

Monte, I'll pick Door #2!

izzee's picture

Remember Goldman runs the White House.  they are advising Trump. Kind of gives you that warm feeling inside.


NoWayJose's picture

Par for Goldman, though it usually takes them a few days to buy what they recommend you sell - before reversing once they have gone long.

Davidduke2000's picture

goldmn cannot fix the price of gold, the demand on physical gold is super strong, they keep shorting papers until these papers are set ablaze.

sinbad2's picture

This all goes back to the 60's, when the US dollar first started to decline. The US sold most of its gold reserves to prop up the dollar, so they came up with the idea of trading pretend gold to defend the dollar.

It's the Emperors new clothes thing, but it hasn't reached the stage where the whole world calls bullshit yet, soon, but not yet.

BitchesBetterRecognize's picture

Goldman's Price is what they wish for to control it until the whole fucking blows up & then the Chinese call them out.