Why Goldman Sachs Predicts Gold Will Climb 10% to $1,425

Goldman Sachs has predicted that the price of gold will rise this year driven by fears of slowing economic growth, according to CNBC. In the next three months, the investment bank has forecast that the price of gold to hit $1,325 per troy ounce from $1,250. Three and nine months later, the Wall Street firm expects the yellow metal to have reached $1,375 and $1,425 from $1,300 and $1,350 per troy ounce respectively. While the three-month target had been reached last year, gold last hit the $1,425 mark in August 2013. According to Goldman Sachs’ analyst, Jeffrey Currie, the price appreciation will be driven by investors looking for safe havens and reserve banks worried about rising geopolitical tensions: Going forward gold will be supported primarily by growing demand for defensive assets. The same is also true of central bank buying, with rising geopolitical tensions incentivizing more central banks to re-enter…

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