“Goldman Sachs Forecast: Gold Price Rise To $2k By End of Year”
September 6, 2021
“EDITOR NOTE: Yet another major financial player is bullish about the gold price forecast in the near future. Analysts from Goldman Sachs say that they “See XAU/USD moderately higher amid a weaker USD and emerging market demand recovery.” They also note that “For gold to move materially higher though, there has to be a general risk-off event which will trigger demand for defensive inflation hedges such as the return of inflation worries.” The combination of a significantly weaker U.S. dollar and an inflation-exploding event could come as soon as September 30, when the IMF revalues its global SDR basket. If the USD loses its status as the world’s reserve currency, it will send people scrambling to pick up as much non-CUSIP gold and silver as they can, just as Goldman predicts.
Analysts at Goldman Sachs said that gold price still has room left to rise to the $2000 mark by the end of this year, in its latest note.
Key quotes
“See XAU/USD moderately higher amid a weaker USD and emerging market demand recovery.”
“For gold to move materially higher though, there has to be a general risk-off event which will trigger demand for defensive inflation hedges such as the return of inflation worries.”
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Original post from FX Street“