Goldman Sachs: Gold Could See Some Short-Term Upside If The Fed Hesitates In Raising Rates In September

With gold prices crashing down in the last few months and breaking the $1100 mark, investors are now fearing that prices could decline to $1050 soon. However, it could make Jeff Currie, Goldman Sachs global head of commodities, happy because that's his price target on gold.

Currie was on CNBC to discuss the long-term and short-term outlook for gold. He also explained how high-yield debt in oil and gas sector can be brought down.

Gold: Long-Term Bearish, Short-Term Upside Risk

"Well when we think about the 3Ds they definitely are driving gold prices," Currie began. "We think about deflation, think about lower energy costs, a weaker South African rand drives down the cost structure of producing gold. When we think about deleveraging, places like India, places like China is going to reduce the demand for Gold through jewelry as well as monetary demand. So, the long-term outlook, we continue to remain negative on."

He continued, "But I do want to put a caveat in terms of the near-term outlook. If we were to see a lack of a response by the Fed in raising rates in September because the market's pricing in roughly about a 45 percent chance. Given the fact that the gold market is very sharp we could see some upside price risks that are driven by that. But we continue to maintain our $1050 target."