Gold surges again as Goldman predicts price will top $2500 this year
Gold has surged again to trade above $2000 throughout today, with analysts now predicting a sustained rise amid turbulence in global equity markets.
Gold peaked at over $2020 per ounce today after the threat of further sanctions against Russia rattled markets yesterday and caused gold to break the $2000 per ounce barrier for the first time since August 2020.
Analysts at Goldman Sachs have now hiked their forecasts for gold prices amid the volatility, predicting that they will hit $2300 in the next three months, up from $1950 previously.
Gold reached an all-time high of $2067 per ounce in August 2020 but Goldman is now predicting the metal will smash the $2500 barrier in the next six months.
Analysts at Commerzbank said inflows into gold ETFs also continued to surge.
“Gold is still in considerable demand as a safe haven, as evidenced by persistently high ETF inflows,” said Daniel Briesemann, an analyst at the bank.
“According to Bloomberg, inflows totalled more than 14 tons yesterday; inflows since the invasion of Ukraine by Russia have amounted to 55 tons.”
Silver is trading at an eight-month high above $26 per troy ounce but Commerzbank said investors were clearly not viewing it as a safe haven in the same way as gold.
“Silver has not gained any ground vis-à-vis gold in recent days but has for the most part only kept pace with it, as can be seen from the gold/silver ratio. It is relatively stable at around 77,” Briesemann said.
“Unlike the gold ETFs, silver ETFs have also registered some sizeable outflows of late. Silver is clearly not being viewed as a safe alternative investment, in other words,” he added.