Following this morning’s flash crash in gold, in which a “fat finger” – usually a euphemism for any trade that can not be logically explained yet one which reprices a given asset class substantially lower as happened with gold – suddenly sold $2.2 billion worth of gold in under a minute, taking out the entire bidside stack, we were expecting banks to immediately come out with bearish reports on gold, piggybacking on the latest central bank-facilitiated smackdown, and allegedly allowing their prop desks to load up on the yellow metal on the cheap.
We were surprised, however, when moments ago Goldman came out with a report explaining why the bank is now bullish on gold, Further, in the note from Goldman’s x-asset strategist, the bank laid out three specific reasons why gold may trade well above the bank’s commodity team year-end target of $1,250.
This is what Goldman said moments ago:
This post was published at Zero Hedge on Jun 26, 2017.
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