Goldman Sachs is talking up both sides of oil and gold trades
Analysts from Goldman Sachs are on Reuters saying that oil prices don't have much further to materially fall.
That's odd because at the start of the month they said prices are likely to chop in the $20-$40 range for the first half of the year "with the price lows likely still to be set."
A drop to $20 would be a 50% decline from here and I tend to see that as a 'material' decline.
Meanwhile, ZeroHedge outlines how the technical and commodity teams on gold are also at odds.
"Although 1,200-1,202 might hold in the near-term, there's scope to extend much higher over time," the technical team said 5 days ago.
Today, the commodities team announced it was on the other side of the trade. "As we maintain our view of rising US rates and hence lower gold prices with a 3-month target of $1100/toz and 12-month target of $1000/toz, we are recommending shorting gold through a GSCI-style rolling index," they wrote.
Goldman is an absolute mess at the moment. They're getting roundly mocked for blowing 5 of their top 6 trade ideas for 2016 already. On the weekend, they also revised their 10 commandments of 2016 forex.
