Gold will soar 22% next year as investors protect against rising inflation, Goldman Sachs says

Gold will soar 22% next year as investors protect against rising inflation, Goldman Sachs says

REUTERS/Ilya Naymushin Gold prices will break out of a tight trading range in 2021 as inflation worries stoke demand, Goldman Sachs analysts said in a note.

The bank holds a $2,300-per-ounce price target for the precious metal, implying a 22% rally from current levels over the next 12 months.

Though gold typically falls when long-term interest rates rise, the financial crisis disrupted the pattern and saw gold rise through 2012 as investors feared for strong inflation.

Goldman expects a similar trend to materialize next year as recovery from the coronavirus recession fuels higher price growth. Goldman Sachs expects gold to break out of its narrow trading range and soar through 2021 as the coronavirus recession gives way to higher inflation.Bullion has hovered around $1,900 per ounce after its summer rally to record highs fizzled out in August. US election uncertainty fueled a brief rally, but […]

About the author: StockMan
Tell us something about yourself.
Posting Guidelines
Do
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!

Comments

No comments yet