Gold Prices Hits High For First Time In Five Years Amidst Recession Fears

New York based Goldman Sachs Group Inc. have raised their price forecast for gold predicting that over 12 months the metal will climb to $1,425 an ounce a level not seen in more than five years. The metal has risen in price after geopolitical tensions fuel central bank purchases while fears of a recession have helped boost demand from investors seeking defensive assets.Gold is also getting a boost from mounting speculation the Federal Reserve may pause in raising borrowing costs boosting the appeal of non-interest-bearing metal.

Goldman’s Jeffrey Currie said in a note to clients,”Going forward gold will be supported primarily by growing demand for defensive assets. The same is also true of central bank buying, with rising geopolitical tensions incentivizing more central banks to re-enter the gold market.”

Fears on slowing economic growth and the uncertainties around the Federal Reserve’s monetary policy have stirred the financial markets for a few months. Risk assets took a big hit in 2018 with the stock market suffering the worst in December since the Great Depression.

 

 

 

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