And in merely suggesting such a death sentence for the metal, Goldman’s pronouncement pushed the paper price of gold contracts down $20+.
Many technical indicators underscore Goldman’s views. There’s very little floor for gold prices below $1,200, signaling that gold could gap down quickly.
Conventional wisdom is also moving against precious metals. Newspaper headlines are telling us that emerging markets are toast (India, Indonesia, Brazil) while the developed economies (US, Europe, Japan) are on the mend.
Of course, the facts don’t really support this.