Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Goldman Raises 12-month Gold Price Forecast to $1,425 an Ounce

Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for 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 metal will climb to $1,425 an ounce -- a level not seen in more than five 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,” they said.

Even exchange-traded funds are piling into bullion, taking their holdings to the highest since May. On the Comex in New York, prices have climbed 10 percent 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, Suki Cooper, a New York-based analyst at Standard Chartered, said in a note.

Gold is also getting a boost from mounting speculation the Federal Reserve may pause in raising borrowing costs, boosting the appeal of non-interest-bearing metal.

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