Goldman Sachs Bullish on Gold

Goldman Sachs Bullish on Gold


Goldman Sachs Group (NYSE:GS) leading the Bullish pack on Gold.

The New-York based bank’s analysts led by Jeffrey Currie raised their price forecast for Gold, predicting that over the next 12 months, the precious Yellow metal will climb to $1,425 oz, a mark not seen in more than 5 years.

Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking “defensive assets,” Goldie said.

Even ETF’s exchange-traded funds are piling into bullion, taking their holdings to the highest since last May.

On the COMEX in New York, prices have risen 10% from a low in August.

Speculative interest in the Gold signals investors are not only closing Bearish bets but are also adding to their Bullish position.

Also, Gold is getting a boost from mounting speculation the Fed may pause in raising borrowing costs, boosting the appeal of non-interest-bearing precious Yellow metal.

“We expect the safe haven bid, and to a lesser extent, gold’s inflation hedge properties, to remain Key drivers of the metal’s price in 2019, complemented by a resurgence of physical demand,’’ Cantor Fitz analysts led by Mike Kozak said in his report.

Gold and Silver are ‘‘looking good in 2019,’’ underlining a potentially positive indicators that ‘‘should drive a bullish case” for both metals “and as a result, the related equities as well.’’

Stay tuned…

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