Continue reading this on our app for a better experience

Open in App
Floating Button
Home News Gold

Goldman sees virus lifting gold to US$1,800 as 'last resort' haven

Bloomberg
Bloomberg • 1 min read
Goldman sees virus lifting gold to US$1,800 as 'last resort' haven
Gold is trading near a seven-year high, supported by an increasing number of coronavirus cases worldwide that threaten to curtail global economic activity.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Feb 27): Goldman Sachs Group Inc. boosted its gold forecast to US$1,800 ($2,514) an ounce as the coronavirus, depressed real rates and increased focus on the U.S. election continue to drive demand for the metal as a haven.

The bank raised its 12-month projection by US$200, and said “in the event that the virus effect spreads to Q2, we could see gold top US$1800/oz already on a 3-month basis.” Spot gold, which has jumped more than 8% this year, closed at about US$1,641 an ounce in New York.

Gold is trading near a seven-year high, supported by an increasing number of coronavirus cases worldwide that threaten to curtail global economic activity. The metal has outperformed traditional haven currencies including the Japanese yen and Swiss franc as “the haven of last resort,” Goldman analyst Mikhail Sprogis said in a note Wednesday.

The bank expects prices to climb to US$1,700 an ounce in three months, and to US$1,750 in six months. It previously forecast US$1,600 for both time frames. Goldman also raised its silver forecast.

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.