GS are bullish for the gold price, this from an on overnight (Monday US time) note:
- Goldman Sachs expect it to outperform in coming months
- Says the dislocation between the gold prices and US rates is here to say
Bullish view driven by
- Higher inflation (gold is an inflation hedge)
- Rising EM wealth which historically has been positive for gold
- Increased risk of an equity correction
More:
Goldman forecasts four Fed rate hikes this year
- Nevertheless .... says data from the previous six tightening cycles shows gold's outperformance of 4 out of these 6
- "This is likely a function of investors waiting on the sidelines and then becoming interested in gold once the tightening 'catalyst' has passed."
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GS were on the right side of the overnight move at least:
