While up 11% in 2014, gold experienced its biggest weekly price drop since September, 2013, this week settling near $1,331.20 an ounce. For its part Goldman Sachs reiterated its sell recommendation on the precious metal, issuing a $1,050 price target, saying the factors that led to the rise in value are not sustainable.
Gold Price: Goldman's three catalysts
Goldman noted three distinct catalysts that have driven the rally: (1) a sharp slowdown in US economic activity which we believe was weather driven, (2) high Chinese credit concerns (3) escalating tensions over Ukraine.
Goldman expects all these factors to taper, sending gold significantly lower.
“While further...
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