Goldman (NYSE:GS) Says Take Long Position in December 2011 COMEX Gold Contract

Goldman Sachs (NYSE:GS) said recently traders should take a close look at entering a long position on December 2011 COMEX contract for gold.

According to Goldman's projections, gold, which closed at over $1,365 an ounce for spot gold Monday, should increase by over 20 percent over that mark in 2011, with estimates of $1,650 an ounce on the precious metal.

The giant financial institution said the reasoning behind their $1,650 an ounce figure is TIPS falling under 50 basis points at the 10-year mark.

That means lower interest rates will help push gold prices higher in 2011, according to Goldman, although there are a number of factors which support those conclusions as well.