Gold price prediction: Goldman Sachs sees more downside for gold

Goldman Sachs updated Tuesday his gold price prediction. “Although gold has now traded below the 1,450/toz target embedded in our short recommendation, we are maintaining our short as we argued last week that prices could decline more than we initially thought as positioning is stretched and momentum is to the downside,” the analysts said in a note published April 16. Goldman said the most recent exchange-traded-fund holdings show “acceleration in the liquidation of length, which points to a broad-based sell-off extending beyond the futures markets with potential more room to go.” As a result, Goldman is lowering the short stop to $1,400/toz, “while we wait for the evidence of a bottom, though we are not changing our price forecasts for now.” Goldman also said it believes base metals are closer to a bottom than oil..

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