Gold remains in demand as a safe port. According to Goldman Sachs, several factors speak for a significant increase in the precious metal in the coming months.
• Worldwide gold purchases from central banks and investors drive the market
• Expected Fed interest reductions and inflation concerns increase the attraction of real assets
• Goldman Sachs sees gold price in the long term at $ 4,000
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Goldman Sachs expects new record stands until 2026
Goldman Sachs expects the gold price to climb around $ 3,700 per ounce by the end of 2025. By mid-2026, a level of around $ 4,000 would be realistic, which would represent a new record high. According to the bank, this assessment is based on persistently strong purchases of the central banks, which diversify their foreign exchange reserves and want to protect themselves against currency risks.
At the same time, ETF investors reinforce their commitments: Gold is increasingly being considered as protection against economic uncertainties and geopolitical tensions. This robust demand from both camps forms the foundation for the positive price forecast, as the bank explains on its website.
Interest cuts and inflation fuel gold demand
The expectation of falling key interest rates in the USA and in other major economies strengthens the attractiveness of the interest -free precious metal. According to Reuters, Goldman Sachs points out that in an environment with less restrictive monetary policy borrowing and losing other interest on interests.
In addition, there are persistently high budget deficits and inflation risks that drive investors more into real assets such as gold. There are also uncertainties about the independence of the US Federal Reserve and possible political interventions support the escape into the precious metal.
Desdollarization and conflicts strengthen the safe harbor
In addition, a weakened US dollar also has a price-stringing effect because gold is cheaper for buyers outside the United States. Reuters reports that Goldman Sachs expects an increasing desolarization of the reserves in some emerging countries. Geopolitical tensions and trade conflicts also give the precious metal additional support.
In an interview by CNBC, Francisco Blanch, raw material strategist at the Bank of America, complements the perspective of a longer-term “gold super cycle”, which could not only favor gold, but also industrial metals and mine stocks.
Capital flows could catapult gold to new heights
In addition to the basic forecast of $ 3,700 by the end of 2025 and $ 4,000 by mid-2026, Goldman Sachs outlines even further options. If some of the global capital flows from US state bonds are diverted to gold, the bank even believes significantly higher price levels. This scenario makes it clear that from the analyst’s perspective, gold should keep a central role in the long term as a value preservation and protection in uncertain times.
Editor finance.net
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