Gold Will Fall Despite Today's Rally, Goldman Sachs' Currie Tells CNBC
NEW YORK (TheStreet) -- The prices of oil and gold have "been going in different directions lately" with gold moving higher and oil lower today, CNBC's Brian Sullivan reported today on "Power Lunch" Thursday.
The price of gold is rising by 0.82% to $1,330 per ounce, while Crude oil (WTI) is slipping by 2.3% to $44.70 per barrel and Brent crude is declining by 2.14% to $46.16 per barrel late this afternoon.
Goldman Sachs Global Head of Commodities Jeff Currie predicted the price of gold would sink to $1,300, on Brexit day last month, and he is sticking to that estimate.
"Tactically we're not really supportive of gold but strategically we want to own it. Our price target is $1,300 a ton but it's a great hedge against what's happening out in the world right now," Currie stated, citing risks such as the uncertain aftermath of the U.K.'s decision to leave the European Union.
"Being long gold" is equivalent to being "short politicians," he joked.
Gold trades "sideways." It went up to $1,360 twice and it "hasn't been able to penetrate it since," Currie noted.
"The underlying fundamentals on a tactical main-case basis don't support pushing up to $1,400," he continued.
As for oil, "we are still a ways" from a deficit that will lead the market significantly rising higher and staying there, according to Currie.