Goldman Sachs Sees Gold Prices at $2,000 Per Oz In One Year

SEATTLE (Scrap Monster): Goldman Sachs predicted that gold prices are likely to hit $2,000 per Oz within the next one year. The investment bank noted that the hike in yellow metal prices will be triggered by several factors, mainly low interest rates and concerns regarding currency depreciation.

The investment demand, mainly driven by fears of worse economic slowdown following pandemic crisis, has lifted gold demand by 18% so far this year. The weak dollar has boosted the purchasing power of major gold buyers across emerging markets. It foresees a material rebound from emerging market consumer demand, boosted by easing of lockdowns. The bank noted that gold prices have appreciated by 13% since the beginning of 2020.

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Goldman Sachs updated its three-month gold price forecast from $1,600 per Oz to $1,800 per Oz. The six-month forecast was lifted from $1,650 per Oz to $1,900 per Oz. It must be noted that the bank had earlier forecast the one-year gold price at $1,800 per Oz. The three-month, six-month and one-year silver price forecasts were updated to $19 per Oz, $21 per Oz and $22 per Oz respectively.

For gold to move above $2,000 per Oz, the inflation should have to move above 2% target set by the US Fed Reserve.

Earlier in February this year, Goldman Sachs had noted that gold was at an “inflection point”.