Goldman Sachs raises gold price forecasts

Goldman Sachs raised its gold price forecasts this Thursday. The investment firm now anticipates the price of precious metal at $1,350, $1,375, and $1,450/oz over the three, six and twelve months period respectively as against previous forecast of $1,225, $1,200, and $1,225/oz.

The reason for the revision was more towards stronger emerging market growth, with more upward pressure also seen from stronger EM currencies against a weaker dollar and potential for hedging demand in a choppy market environment.

They also argue that higher inflation breakevens due to rising oil prices will help boost gold prices as well.