Investors may want to use any weakness in gold to buy more.
Just this morning, Goldman Sachs raised its forecasts from $2,000 to $2,300 in the next 12 months. However, we could see that sooner rather than later with all of the chaos and fear in the markets. While there’s plenty of optimism and FOMO in the markets, there’s plenty of bearish momentum building too.
• Tensions with China are at an all-time high
• Tensions with Iran are boiling over
• The coronavirus is still making its way around the world
• There are protests and riots in the streets of the U.S.
• There’s sizable economic slowdown fear, which is sending gold to all-time highs
Plus, according to Goldman Sachs, “a potential shift in the U.S. Fed toward an inflationary bias against a backdrop of rising geopolitical tensions, elevated U.S. domestic political and social uncertainty, and a growing second wave of COVID-19 related infections,” gold’s surge to new highs lately has outpaced gains for real rates and other alternatives to the dollar, as reported by MarketWatch.