During a panel discussion at the Commodities Week conference in London today, Jeffrey Currie, head of commodities research at Goldman Sachs, called gold and other precious metals a “slam-dunk” sell once the current fiscal crisis in Washington is resolved.
Whitney McFerron at Bloomberg News has the comments: “Once we get past this stalemate in Washington, precious metals are a slam dunk sell at that point,” Currie said. “You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices.”
Goldman has long been bearish on gold prices, especially as long-term interest rates have risen in 2013.
However, in a September 19 note to clients following the Federal Reserve’s surprise decision to refrain from tapering back its quantitative easing program, Currie said the risks to gold were “skewed to the upside in the near term,” citing the Fed decision and the upcoming debt ceiling debate.
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