The Vampire Squid, aka Goldman Sachs, shocked the gold market last week by announcing they were now bullish on gold. This is a revelation because the bank-slash-investing house is notoriously bearish on gold. Your own Gold Enthusiast, who’s been around slightly less long than Methuselah, can only remember one other time Goldman was publicly bullish on our favorite yellow metal. (But searching the web didn’t turn up a reference in the correct time frame. So maybe this really is the first time…)
Goldman gave three reasons why they were changing their seemingly-perpetual tune, according to the Goldman Sachs report on July 26, 2017.
“Our commodity team’s view is gold at $1250/oz over 12 months as higher real rates from Fed tightening could put further pressure on gold, but this may be offset by 3 things: