Every once in a while even “the smartest guys in the room” can get their wires crossed. Or split… and so we get into today’s gold price news.
On Tuesday, analysts at Goldman Sachs issued contradictory recommendations about gold. Goldman’s chief currency strategist, Jeffrey Currie, issued a recommendation citing an expected $1250 for the metal at the end of 2017. Just a few hours later, Goldman’s chief technician, Sheba Jafari, issued a report stating, “Gold and Silver have targets in the area of 1,375-1,380 and 18.97”. It’s certainly not unusual for two analysts to have different opinions. But more relevant is the fact that Currie and Jafari are from the same company.
Experienced investors may remember years ago when Goldman was accused of trading contrary to the advice they were giving their clients. This practice is indeed frowned upon in the current Goldman Sachs environment. But — with one foot in each corner — at least now Goldman and their clients are justified going either way.
To your Gold Enthusiast, it was especially interesting that the fundamental analyst saw a correction coming, while the technical analyst saw bullish gold prices continuing higher. Today’s featured article gives some details on yesterday’s Goldman musings on gold price news.