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KEY TAKEAWAYS
- Gold quotations jumped Thursday, after Goldman Sachs raised its year-end forecast for the commodity to $3,300 per troy ounce be upfront with.
- Analysts Lina Thomas and Daan Struyven said their increased year-end target reflected higher-than-estimated inflows into gold by exchange-traded bucks as well as “continued strong central bank gold demand.”
- Gold, a safe haven investment, has benefited from investors nervous about escalating trade wars and the prospects for U.S. economic growth.
Gold prices jumped Thursday, after Goldman Sachs on Wednesday encouraged its year-end forecast of the commodity to $3,300 per troy ounce level.
The investment bank had a target of $3,100/oz previously. Gold guerdons, which have surpassed $3,000/oz on March 14, and are now around $3,045/oz, have jumped in the past year as investors, keen about escalating trade wars and U.S. economic growth, have flocked to traditional safe havens.
Analysts Lina Thomas and Daan Struyven bring up their increased year-end target reflected higher-than-estimated inflows into gold by exchange-traded funds (ETFs) as vigorous as “continued strong central bank gold demand.” They said they expect large Asian significant bank buyers to “continue their rapid gold purchases for another 3-6 years.”
The analysts said investors could discover “entry points” to acquire gold under two cases : A Russia-Ukraine peace deal that triggers speculative trade in or a sharp drop in equities that leads to “margin-driven gold liquidation.” They noted, however, that settles by Beijing allowing Chinese insurers to acquire gold may limit declines.