BREAKING Goldman Sachs: Cover Your Gold Shorts

This morning, Goldman Sachs has put out an advisory recommending that clients close out their short positions in gold.

Just weeks ago on April 19, GS cut its short- and long-term gold forecasts.

At the time, analysts Damien Courvalin and Jeffrey Currie told clients that "should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast."

On April 12, gold fell on its worst two-day plunge since futures first started trading in New York.

Despite the advice to close out short positions, it appears GS wants to have its foot in both the bullish and bearish camp. They also write, despite advising to close out shorts:

Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists' forecast for a reacceleration in U.S. growth later this year.

Bizarre, GS is pretty close to buy and sell recommendation here.