A few days ago, I wrote:
I think at least 3 big banks like Goldman Sachs, JP Morgan, HSBC and
other big hedge funds are gearing up to gun gold down to that support zone at around $1000-$1089. They are accumulating Shorts in stages and by late December 2013 or March 2014, I think you will see gold bottoms.
Today, you can read the following report just published by CNBC:
Goldman Sachs predicts a "significant decline" in gold in 2014, following losses of around 26 percent in the previous metal so far this year.
Bullion is set to fall at least 15 percent next year, the bank said in a report of the top 10 market themes for 2014 this week, which warned of the growing downside risk for commodities.
The decline would bring gold down to $1,057 an ounce – prices not seen since early 2010.
Gold suffered a sharp fall this week as better-than-expected U.S. economic data raised the possibility that the Federal Reserve may start scaling back its $85-billion-per-month bond-buying program earlier than anticipated.
"Gold is extremely sensitive to the Fed tapering monetary stimulus. Back in September when we had a surprise announcement from the Fed that we're not going to taper anytime soon, we saw gold rally 5 percent," Matthew Grossman, senior equity strategist at T-3 live.com.
"And then just a couple of days ago, the Fed minutes came out and they said taper is more likely sooner than later. And what happened? Gold fell 3 percent. We're seeing a very high correlation with that," Grossman said.
Never mind, as long as we know when to buy before gold and silver take off to $2000 by the end of 2014. Have faith in gold for long term gains!