Goldman Sachs (NYSE:GS) expects the continuation of the bullish wave that started recently in gold prices for quite some time, in light of the recovery of factors that support the demand for gold in the coming period.
The bank attributed the continuation of this wave to three reasons, which are the intensive purchases from central banks, in addition to the increasing global geopolitical uncertainty, and the continued acceleration of consumer demand for gold, mainly driven by buyers in Asia.
The bank added, “We now expect all three of the aforementioned major components that drive gold demand to rebound strongly. The last time we saw all the major demand drivers accelerating simultaneously was in 2010-2011 when gold rose by almost 70%.
In the meantime, the bank revised its expectations for gold prices for the coming period, in its latest review, to the following prices:
The bank raised its expectations for gold during the next 3 months from 1950 to 2300.
And during the next 6 months, from 2050 to 2500.
And during the next 12 months, from 2150 to 2500.
other predictions
ENG Bank expects the average price of gold to reach $ 2,000 an ounce in the fourth quarter of this year, with increased exposure to speculators, and the Federal Reserve cutting interest rates, according to what the bank expects.
ING’s head of commodity strategy, Warren Patterson, said that after the explosive rally of the past three weeks, some pullback in gold is inevitable. However, there is plenty of room for prices to rise in the second half of the year.
“While we anticipate a downturn in prices in the short term, we see gold prices trending higher during the second half of 2023, and we expect spot gold to average $2,000/oz during the fourth quarter of 2023,” Patterson said. “The assumptions about this are that we don’t see further deterioration in the banking sector and that the Fed starts cutting interest rates at the end of this year.”