Regal Group International: Goldman Sachs Group raises 12-month gold forecast to $1,650.

Oct. 14, 2010 - PRLog -- Regal Group International sources report that Goldman Sachs Inc. has increased its 12-month price target for gold to $1,650 per ounce, believing that the return of quantitative easing will be an ongoing catalyst for the precious metal.

The New York headquartered investment bank and commodities broker at the same time, increased its three month gold price forecast to $1,400 and its six month forecast to $1,525.

The firm’s economics team said they believed that the U.S. Federal Reserve would announce a return to quantitative easing measures by as soon as the November FOMC meeting.

"We see this acting as a strong catalyst to carry gold prices to the higher levels that we now forecast," a Goldman Sachs source told Regal Group International.

Gold prices have been rampantly bullish after last month’s comments by Brazilian Finance Minister Guido Mantega who warned of an imminent “currency” war.  With the global economy showing clear signs of slowing it is only a matter of time before central banks take steps to stimulate economies. Central banks are already involved in a series of competitive currency devaluations, Regal Group International sources report, and this is supported by the fact that the gold price is increasing in terms of almost all currencies.

In the last week gold has rallied 12% to the dollar, 7.8% to the Canadian dollar and 10.5% in regard to the British pound.

# # #

Regal Group International is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is looking for an avenue to place fast efficient orders.