Goldman Sachs has long anticipated higher commodity prices. Last year, bank indicated that within the next 1-2 years, the price of copper will reach the level of $9,500 per ton. At this point, the price is already trading above $8,000 level and is quickly rapidly approaching its historic highs and target set by GS.
Bank maintains its positive outlook on the commodity market, also pointing to inflation trends. GS expects that the price of gold will reach new all-time highs this year and remain around $ 2,300 per ounce level for the next 3, 6 and 12 months. Recently, gold has fallen quite sharply below $ 1,900 per ounce. The price, however, managed to stay within the range of the previous correction and started to rebound dynamically at the beginning of this week. Recent sell-off was partially caused by the higher bond yields. However, it is worth noting that yields rebound due to higher inflation expectations, which in turn should be positive for the gold market. It is also worth remembering that the Fed is expected to keep its federal funds rate near 0-0.25 percent for a long time.
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Open account Try demo Download mobile app Download mobile appGold is testing key support. Can new historical highs be expected within the next 3 months? If the market will manage to shrug off recent restrictions, then investors should again want to buy any assets, especially those that protect the value of money. Source: xStation5
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