MW: Goldman Sachs sees gold at $1,300 in six months
By Claudia Assis
SAN FRANCISCO (MarketWatch) -- "Significantly" lower U.S. interest rates point to higher gold prices, Goldman Sachs said in a note to clients made public late Wednesday. Goldman Sachs forecast gold futures at $1,300 an ounce in the next six months. The low rates lead to a high level of speculative buying in gold, which is now oversold, the investment bank said. In addition, Goldman's economists expect that the Federal Reserve will return to quantitative easing measures in late 2010 or early 2011. "We believe that a return to quantitative easing could act as a strong catalyst to carry gold prices to higher levels," the analysts said.
