Goldman Hikes Its 12 Month Gold Price Target From $1,735 To $1,830

Tyler Durden's picture

The first of many gold price upgrades is here, as Goldman's David Greely finally catches on to what has been all too obvious to anyone with a frontal lobe: "Gold prices hit a new record high last week, closing at $1,663/toz on August 3. Despite this rally, the rise in gold prices has continued to lag the plunge in US real interest rates, with 10-year TIPS yields trading below 30 bp. With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively." Next up: everyone else.

Note summary:

Gold prices rise to record high as 10-year US TIPS yields plunge to a record low


Gold prices have rallied strongly since the beginning of July, rising 12.2% to a record (nominal) high close of $1,663/toz on August 3. While the rise in gold prices has been sharp, it continues to trail the fall in US real interest rates. In particular, 10-year US TIPS yields plunged from 77 bp to a mere 24 bp over the same period, according to the US Federal Reserve. Consequently, despite this rally to yet another new record (nominal) high, we believe that gold prices will continue to rise as: a) 10-year US TIPS yields are at an historic low; b) a diminished outlook for US economic growth suggests US real rates will remain lower for longer; c) gold prices in inflation-adjusted terms remain well-below their 1980 highs; and d) sovereign debt concerns have intensified in the United States and Europe.


Raising our gold price forecasts as the diminished outlook for US economic growth suggests US real interest rates will remain lower for longer


We had expected gold prices would continue to rise through the middle of 2012, when we expected rising US economic growth would push real rates higher and gold prices lower. However, with our US economics team now lowering their outlook for US economic growth to 1.7% in 2011 and 2.1% in 2012, we now expect real interest rates will remain lower for longer, and we are now raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, up from our prior forecasts of $1,565/toz, $1,635/toz, and $1,730/toz, respectively. Net, this revision in effect pulls forward the higher prices we expected on a 6 and 12-month horizon – as US economic growth has been slower, and US real interest rates lower, than previously anticipated – and extends the upward trajectory for gold prices through 2012. Further, the recent escalation of sovereign debt concerns suggests that the near-term risk to our new forecast is skewed to the upside, and we continue to recommend long trading positions in gold.

And full note:


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New World Chaos's picture

Blythe Masters (the Master Metal Manipulator) now has a blog, and she's quite full of herself.  She needs to be savaged by filthy trolls:

PaperBugsBurn's picture



You know, JPMorgan is also recommending long gold. Considering Rothscum and Co. have been amassing gold for hundreds of years, I'd say they've decided to pull the trigger on the recalcitrant politicians in DC. HSBC (you know, the bank founded by Sassoon and Rothscum to finance their opium trade) has been allowed into China's new gold trading hub.


All in all, I think Amerika is royally phucked.

Oracle of Kypseli's picture

I checked that link and I was surprized. Her outfit in the first picture is the same with either my mom's tablecloth or her curtains. I am not sure.

Pure Evil's picture

She's definitely being ravaged by quite a few filthy trolls.

The Shootist's picture

As she should be. She's def one of the people I want to see visiting Maddoff.

PaperBugsBurn's picture



My comment on Blythe's site:


Blyhte, Blythe, Blythe... so you hang out with Rothscum & Co., huh? Fucking scumnbags.. we'll be coming for you banksters soon, bitches  you hear me?????  we're coming for you fascist scum!!!!!



Hearst's picture

Blythe will be among the list of those scared for their lives if this is the moment in our history where the world wakes up to physical.  Once the masses turn for Silver and Gold coins and bullion there wont be any stopping it until the fraud of SLV & GLD and all other fractional reserve based precious metal holdings are exposed to the light of day.  

Oracle of Kypseli's picture

ETF's are derivatives. they will eventually blow up in smoke

HungrySeagull's picture

Paper can only be rubbed before it burns.

Now a woman.....

sunnydays's picture

That is hilarious.  She must be needing to put herself out there for when the whole manipulation of PMs blow up and she looses her job.

Ray1968's picture

The Empire will stike back with Darth Blythe. They will lose, but they will try to blow everything up in the process.

Metal in your hand..... bank on it.

DosZap's picture


Like your handle soul brutha.........

yes, you are correct..................................Smoke on the Water.

Wait till a.m., the Vamp will nail this biatch MUST go above $1,720 before a.m., or they will knock it back to $1,675.

Silver will get creamed as usual...........but they will suck in a few longs first.

LynRobison's picture

Her blog is amazing in its degree of self-promotion. It is a big, long, self-aggrandizing advertisement for Blythe Masters. In short, it is her resume. 

New World Chaos's picture

All the more reason to troll-pile her while she's too busy to babysit her blog.  Let the world see that she has provoked the wrath of the little people.  Her potential employers may give her points for screwing us but she will lose more points for letting us figure it out.  Let's make sure her best career option involves making casts of her vagina with molten 1000-oz COMEX bars.  They would make great table centerpieces.

erg's picture

Blythe that waspish shrew. Her eyes carious and yellow. That rue-bitten Queen of the Harpies.

IQ 145's picture

 I suppose if they keep guessing they'll be right some day.

Bendromeda Strain's picture

At $1690 they are raising their 3 month outlook to $1645? Give em a loser's ribbon for participation.

adeptish's picture

Blythe gives me the horn ...

nmewn's picture

Canaries...coal mines...

Long-John-Silver's picture

The Canaries died 5-AUG-2011

nmewn's picture


But what sucks will be the rebuilding. If one thinks there is hard feelings now, just wait till some are informed their services are no longer needed...the gravy train is over and they will have to actually do something productive.

Let the rending of clothes & gnashing of teeth commence ;-)

Spitzer's picture

Bill Gross just said live on bloomberg that Japan is AAA when it is AA-, the king of the bond world, what an idiot.

I wish I had it on tape.

let-them-eat-cake's picture

I wish I had it on tape.

"...on the tape"


I'd imagine you will presently.

IQ 145's picture

That's interesting; stress disorder?

StychoKiller's picture

Time to sharpen up the Batt'leth

jstalin's picture

Ok tyler, for the love of god, sign up for cloudflare for zerohedge. It's only $20 a month and it will help all this damn congestion. Now. Please.

jstalin's picture

Yes. I use it for a very high traffic site. It's an awesome service.

PaperBugsBurn's picture



I just clicked on it and it wouldn't load the page... sorry but true. It also went to https for some reason.


I used to work for these folks


excellent systems

IQ 145's picture

Thanks; I bookmarked this; will check it out.

PY-129-20's picture

For the Communist Party USA?

Big Corked Boots's picture

Looks like I picked the wrong week to wait for a dip.

eigenvalue's picture

IMHO, $2830 is a more reasonable target.

William113's picture

Someday I will be as smart as the monkeys at Goolsmen Sucks. Bitchessss

Spitzer's picture

And of course, never underestimate the retardation of your fellow market partisipants. The downgraded debt is rallying, just like I thought.

let-them-eat-cake's picture

just like I thought


Knowing that before time would have been beneficial. Have you got a website I can subscribe to?

Spitzer's picture

Look at my comments a few threads ago.

Actually, I have a Youtube channel called FreeGoldObserver. New material coming soon.

and on that video, I try and explain freegold to Peter Schiff but Ned Naylor Leyland seen my call with Schiff and expanded on in when he was talking about the Pan Asain Gold Exchange on Max Keiser's show.

RockyRacoon's picture

Gotta re-post this since it's pertinent...  keep the PM faith!

“Gold has proven to be a superman investment. It can leap over buildings and do things that investments aren’t supposed to do. And it’s laughing at us."

Dennis Gartman agreed: "Ask the average Wall Street wiseguy if they’re bullish on gold. They’ll say, ‘Yeah, you gotta be, we got money problems [with the dollar].’ If you ask them how many hold gold? 'Very few,' " which is where he sees a weakness and potential for an overvalued asset.  “It’s a bubble in interest, not in owning," he said, "It’s fascinating: Everybody’s bullish, but very few are long."

(Emphasis added).......   There is a bubble in interest!   See?  Even Gartman can be right once in a while.


Spitzer's picture

I like it, thanks for that.

Anyway here is that video of a good market call I made..

Divine Wind's picture

Or as the Japanese say;

CroudFrare.  Now. Prease.

Id fight Gandhi's picture

Too much traffic as all the other news sites are shit and nobody knows what's up.