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Goldman Sachs no longer recommends shorting gold

By Steve Goldstein
Last update: 6:29 a.m. EST Jan. 23, 2008Print RSS Disable Live Quotes

LONDON (MarketWatch) -- Goldman Sachs said it no longer recommends shorting gold, as it has since Dec. 11, which on paper resulted in a loss of $54 an ounce. After the Fed rate cut, "we believe that there is now greater pressure for continued U.S. dollar weakness. We have long held that the gold price trades inversely with the U.S. dollar; thus, with the increased uncertainty in global financial markets and a higher probability of continued U.S. dollar weakness, we believe that the risk/reward of our short gold trade has diminished," it said.