While Goldman is by no means is predicting a moonshot, they’re not clubbin’ the yellow metal like a baby seal either. Here’s the details…
by Justin Low of ForexLive
Goldman Sachs raises their forecast for gold, from a report by analysts Michael Hinds and Jeffrey Currie
The report shows that they raised their 3, 6, and 12 months forecast to $1,350, $1,375, and $1,450/oz respectively.
Previous forecast was $1,225, $1,200, and $1,225/oz for 3, 6, and 12 months.
The reason for the revision was more towards stronger emerging market growth, with more upward pressure also seen from stronger EM currencies against a weaker dollar and potential for hedging demand in a choppy market environment.
They also argue that higher inflation breakevens due to rising oil prices will help boost gold prices as well.
Gold has been on the retreat over the past two weeks after peaking just above last year’s high, and even the recent decline in sentiment from equities (and even talks on inflation) have failed to keep prices up. Gold is now down 0.59% on the day at $1,310.74.