Goldman Sachs predict short term move to $1,825 for Gold. NGD is oversold!
Goldman Sachs (GS) analysts are predicting a short term move to $1,825 for gold in the next three months. The logic behind the call is that negativity surrounding the debt ceiling debate, even more easing by central banks, and a weaker than expected U.S. economy in the first half of the year, are all positives for the precious metal.
Gold is a buy here - Just added. Edmund Moy, chief strategist with Morgan Gold in Irvine, Calif., and a former director of the U.S. Mint, has an interesting theory. Moy thinks that gold should continue to climb as long as the debt ceiling gets raised, and that there is even a pretty simple formula for how the price of gold tends to track the level of the debt ceiling. Just move the decimal point 10 places to the left.
To wit, Moy notes that the debt ceiling limit currently stands at $16,394,000,000,000. Gold is now around $1,672 an ounce. If Congress eventually agrees to raise the debt ceiling -- for argument's sake, let's say it gets bumped to near $18 trillion, then gold should start to move toward $1,800 an ounce.
This had a brief selloff a month ago to the mid 9 range and quickly spiked to almost 12. Shorts will be trapped as usual with many stops taken out and a nice short float that will be forced to cover. Looking to add 2,000 more shares at some point tomorrow. Good luck!