Goldman Sachs has updated its gold price forecast to $2,700 per ounce by year’s end.
GS says recent price rises are unrelated to the usual macroeconomic factors linked to gold, “real rates, growth expectations, and the dollar”
- "None of those traditional factors adequately explain the velocity and scale of the gold price move so far this year."
GS cite:
- constant demand of central banks, including the People’s Bank of China (PBOC)
- increase in retail demand from Chinese investors
- uptick in the US gold demand, Wells Fargo estimating that Costco’s gold business was generating sales of up to $200 million monthly
- gold’s demand as a safe haven might grow depending on the fed rate cuts that might happen, and the results of the US elections.
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I'm surprised they didn't mention the role of western governments' asset forfeitures and the role that is likely playing in the demand for physical gold.
