A new record came in the price of ounce gold today. With the price exceeding the 1980s, Goldman Sachs pushed its target even higher.
Goldman Sachs, a New York-based global investment banking giant, has raised its price target below due to rising risks in the US Dollar.
In a note it sent to its customers today, the bank announced once again that its price target is $ 2300 per ounce, labeling gold once again as a “last resort currency” amid uncertain economic conditions.
Gold price has increased significantly in recent weeks. Precious metal has outperformed its record level in the past few days and has set a new record today. Ounce gold has risen to $ 1981 today and is traded at $ 1950 for minutes when the news goes live.
The bank attributes this precious metal rally to the Fed’s shift towards a potentially inflationary trend, with the second wave probability in the outbreak, domestic political tension and social uncertainty in the US, and increased geopolitical tensions.
“All of this combined with a record US national debt began to raise real concerns about the longevity of the dollar as a reserve currency,” the note said. It said.
Goldman predicts that the current macro environment may affect the dollar’s world reserve currency status, “Gold is the last resort in such an existing environment, especially where governments have reduced the value of nominal currencies and pushed real interest rates to their all-time lows. We expect further decline in US real interest rates. ” uses expressions.
If Goldman’s forecasting is realized, the price of gold will increase by 18 percent above the current levels.
Bank of America’s target is $ 3000
Meanwhile, the banking giant Bank of America said in a statement in April that governments will raise the gold of economic incentive packages in the middle of the pandemic to record levels by October 2021. According to the bank’s analysts, the price of precious metal can rise to $ 3000 per ounce in 18 months.