- Russia-Ukraine conflict and inflation fears increase demand for gold
- Goldman Sachs revised their gold price projections to new record levels
Gold Trading at Historic Levels
Due to current events, Goldman Sachs has pushed its gold price projections on the 6-month horizon to a record $2,500 an ounce. That’s almost $500 more than the previous record price set in August 2020.
Gold prices passed $2,000 an ounce for the first time in a year-and-a-half on Monday as Russia’s full-scale assault on Ukraine continued.
Gold surged again to trade above $2,070 this week.1 Analysts are now predicting a sustained rise as further sanctions against Russia rattle markets. Investors are flocking to gold as the crisis worsens. Gold is seen as a safe-haven asset in times of market turmoil because it retains its value during a time of crisis. Goldman Sachs called gold the “currency of last resort”.
Gold Price Projections
Goldman Sachs updated their gold price forecasts due to the conflict, international inflation and the threat posed by rising interest rates.
The bank changed its 3-month horizon to $2,300 an ounce, from $1,950 an ounce previously.
The 6-month protection has moved to $2,500 an ounce, from $2,050 an ounce previously.2
Goldman is citing the demand for gold is coming from consumers, investors, and central banks. Everyone is seeking a way to shelter their wealth in the face of soaring inflation and a stagnating economy.
Stocks and bonds have been experiencing wild swings with dramatic one day drops since the conflict began two weeks ago. Bitcoin has also continued to be volatile, losing the ‘digital gold’ title previously bestowed on it by some investors.
The crisis is shaking a fragile global economy that was already struggling with inflation, supply chain issues and the remnants of a pandemic. Unfortunately, there seems to be no clear ending in sight for the conflict. So, while stocks keep dropping, informed investors are moving into the one commodity that is poised to keep increasing in value – gold. Learn how to protect your assets with a Gold IRA from American Hartford Gold. Give us a call today 800-462-0071.
