Salient to Investors: Damien Courvalin and Jeffrey Currie at Goldman Sachs said the cycle for gold prices, which rose for 12 straight years, has turned as the U.S. recovery gathers momentum and investment holdings collapse. Goldman lowered its 3-month target to $1,615, 6-month forecast to $1,600, and 12-month forecast to $1,550, and reversed its
READ MORE... →Salient to Investors: Bond investors are lowering their outlook for inflation in developing markets to a 9-month low. Alessandro Bee at Bank Sarasin sees moderate growth compared to recent years, which should keep inflation in check and create a really nice environment for local bond markets. Bank of America said investors see
READ MORE... →Salient to Investors: William C. Dudley at FRB of New York said the international economy is gradually improving in a trend that benefits US growth. Dudley said Europe is considerably brighter as political support for fixing budgets is holding up, the ECB has provided a credible backstop, and it’s very clear countries want to
READ MORE... →Salient to Investors: Mitali Das and Papa N’Diaye at the IMF said China’s supply of low-cost workers will run out between 2020 and 2025 pushed by a precipitous drop in the working-age population, and necessitating a shift to a more intensive growth model with a greater reliance on improving total factor productivity. A 2010
READ MORE... →Salient to Investors: Christine Lagarde at the IMF said the US must create a long-term plan for handling the deficit or risk its position as the world’s economic leader. The IMF said the US economy remains on track, and expects 2 percent in 2012 and 3 percent in 2014. Read
READ MORE... →Salient to Investors: The IMF said: The world economy will grow 3.5 percent in 2013 and 4.1 percent in 2014, versus 3.2 percent in 2012. The euro region will shrink 0.2 percent in 2013, led by Spain and slowing growth in Germany, and grow 1 percent in 2014. The euro region poses a
READ MORE... →Salient to Investors: The IMF said: India’s financial system is vulnerable due to a deterioration in bank assets and a lack of capital as the economy slowed. Increasing involvement in the financial industry leaves the government exposed to losses at banks and is braking economic growth India’s economy will expand
READ MORE... →Salient to Investors: The IMF said: the sharp run-up in house prices raises the risk of an abrupt decline. the property sector is the main domestic economic risk, though the odds of a slump that has major economic and financial consequences is fairly low near term. economic growth may rebound to 3 percent in
READ MORE... →Salient to Investors: Raymond Key at Deutsche Bank said gold will rise to a record above $2,000 an ounce in 2013 as central banks continue to print money, but don’t expect too much as the rally is maturing. Jeremy East at Standard Chartered said gold will be the best performing metal, driven by the ETF.
READ MORE... →Salient to Investors: German factory orders fell for a second straight month and by the most since September 2011. Thomas Harjes at Barclays said today’s data are a catastrophe – the huge problem in the rest of the euro area seems to be reaching Germany and its labor market. Harjes said the economic outlook is gloomy for
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