Goldman Sachs Just Covered Its Gold Short

gold bullion bar

Goldman Sachs has covered its gold short.

Here’s why:

We closed our short trading recommendation on gold  We have closed our recommendation to short COMEX Gold, as prices  moved above the stop at $1,400/toz. We have exited the trade significantly  below our original target of $1,450/toz, for a potential gain of 10.4%. The  move since initiation was surprisingly rapid, likely exacerbated by the  break of well-flagged technical support levels. Our bias is to expect further  declines in gold prices on the combination of continued ETF outflows as  conviction in holding gold continues to wane as well as our economists’  forecast for a reacceleration in US growth later this year.

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