Goldman Sachs Raises Gold Forecast to $2000

Asymmetric recovery awaits for commodities, yet, Goldman Sachs analysts are more confident than ever that gold will reach $ 2,000 an ounce.

Goldman Sachs raised its gold price forecast as it expects the gold to continue rising due to fears of a currency downturn and economic uncertainty caused by the coronavirus crisis.

The bank raised gold price estimates for three, six and 12 months to $ 1,800, $ 1,900 and $ 2,000 an ounce from $ 1,600 and $ 1,650 and 1,800 per ounce, respectively.

A weaker dollar would boost the purchasing power of major gold consumers across emerging markets, as well as the easing of lockdowns.

The scenario in which the United States has experienced a second wave of coronavirus cases, while China, the world's largest retail buyer in the world is recovering strongly "is ideal for gold," Goldman Sachs research team said in a note.

"We now have a 'greater conviction' in the 12-month bullish target for precious metals," the team said, adding that gold futures settled at the highest level in 9 years at $ 1,820.60 an ounce on Wednesday, before retreating slightly.

"When it comes to other commodities, investors should choose those less vulnerable to regions where new coronavirus outbreaks - Europe and Asia unlike the United States - are less exposed to disturbances caused by the outbreak itself," they pointed out, adding that the base minerals produced in the Americas are more likely to experience COVID-related issues.

Analysts advice to investors was: "Go to copper, silver, and steel, and conserve gold for a long time," preferring copper as the commodity most exposed to an investment-led Chinese boom. They said that silver will benefit from the constant demand among investors for safe assets, as well as the Chinese industrial recovery.

Gold Prices in Egypt

Gold prices recorded in Egypt about about EGP 801 for the 21k, EGP 686 for the 18K, and EGP 915 for the 24K, while the 8g gold coin scored about EGP 6408.