VIEW: Goldman Sachs note that "gold has........>

GOLD: VIEW: Goldman Sachs note that "gold has struggled to find a direction

since rebounding in late Mar as it remains torn between a large negative

"Wealth" shock to EM consumers/CB demand & a surge in "Fear" driven DM

investment demand. Indeed, the covid shock to EM consumer demand has been

substantial. Offsetting this weakness has been an unprecedented surge in DM

"Fear" driven investment. YtD gold coin demand is up 30%, total weight of gold

in ETF's is up 20% Y/Y & there is a large amount of latent gold demand. Such an

unstable environment has raised concerns that, as risk-on sentiment improves

with DM economies emerging from lockdown, the pace of DM investment demand will

moderate, while EM "Wealth" demand will take longer to recover -- creating room

for a correction in gold prices. However, as we have argued in the past gold

investment demand tends to grow into the early stage of the economic recovery,

driven by continued debasement concerns & lower real rates. Simultaneously we

see a material comeback from EM demand. Accordingly, we are raising our 3/6/12

month gold price forecasts to $1800/1900/2000/toz from $1600/1650/1800/toz and

maintaining our long Dec-20 gold trading recommendation."