Buy Opportunities In Gold: Goldman Sachs (GFI, HMY, AU)

Gold for December delivery fell to $1,080 an ounce and for February, gold futures fell to $1,082 an ounce; as expectations of economic recovery bolstered the U.S. dollar.

Goldman Sachs initiated coverage of South Africa-based Gold Fields (NYSE: GFI) with a buy rating and upgraded Harmony Gold (NYSE: HMY) from neutral to buy. Gold Fields and Harmony have the highest exposure to South African gold production as well as the highest level of operational gearing.

AngloGold Ashanti (NYSE: AU) was rated neutral as it has a lesser advantage from a weakening Rand compared to Harmony and Gold Fields.

Goldman expects gold prices to average $1,261 and $1,425 an ounce in 2010 and 2011 respectively.