Goldman Forecasts Gold Price to Reach $2,000 amid Debasement and Economic Uncertainties

Goldman Sachs raised its 3/6/12 months gold price forecast as the U.S. banker expected a rally in gold bullion to continue due to currency debasement fears, coupled with economic uncertainty.

 

Prior to the upgrade, Goldman forecasted 3/6/12 months gold price to reach $1600/1650/1800/toz, respectively, and the upgrade made it $1800/1900/2000/toz.

Goldman stated that a weaker dollar will boost the buying pressure across the emerging market as debasement fears remain the key driver of gold prices in a post-crisis environment.

“For gold prices to go materially above $2,000, we believe inflation will need to move above the Federal Reserve’s 2% target and this move to be met with a muted policy response,” said Goldman’s analyst.