New Gold Price Predictions from Goldman Sachs
Good news for those who are disappointed about the recent drop in gold prices – Goldman Sachs, the well-known multinational investment bank, recently provided updated forecasts for gold prices for the coming months. The financial services company predicts that gold will rise to $1450 over the next 3 months and $1475 over the next six months. This differs from their previous estimate of $1350 for the next three and six months. Furthermore, GS not only predicts gold hitting $1475 over 6 months, but also staying at that price by the end of 12 months from now.
Reasons for Updated Gold Forecast
Why the gold price increase? Goldman Sachs’ prediction of gold buying to surpass last year’s purchasing by over 100 tonnes. They also expect real interest rates to lower to support gold buying. Goldman Sachs’ base case scenario sees growth improving globally during the second half of 2019’s fiscal year. The asset managing company emphasizes receding recession worries also contribute to gold’s upturn. Along those lines, a less fear-driven gold investment could result in a more stable, steady market.
Goldman Sachs’ studies indicate that if the slow growth in Developed Markets (DM) continues, it will cause gold prices to rise above $1600. Additionally, Goldman Sachs’ advisement of slow growth in DM means the opportunity to diversify your portfolio.