Goldman Stands By Gold-Rally Forecast Even as Price Drops

http://www.bloomberg.com/news/2012-05-10/goldman-stands-by-gold-rally-forecast-even-as-price-drops.html

Goldman Sachs Group Inc. (GS) stood by its forecast for a rally in gold this year, saying that the precious metal will advance to $1,840 an ounce over six months as the U.S. central bank embarks on a third round of stimulus in June.

Gold remains the “currency of last resort,” according to analysts led by Jeffrey Currie in a report dated yesterday, the same day that the price sank to the lowest level in four months as Europe’s escalating debt crisis boosted the dollar. The restated gold forecast implies a 16 percent surge.