Goldman says gold price will hit 6-year high in 2019

Goldman Sach’s head of commodities research Jeff Currie does not expect an early recovery in long-cycle investment and therefore prices of industrial metals due to a structural decline in demand from China, but he is very bullish on the gold price.

Speaking on Bloomberg Surveillance, Currie says gold will benefit from strong central bank buying and the wealth effect in India and China due to strengthening local currencies.

On top of increased physical demand in the two top gold markets, Currie says “recessionary fears are raising physical demand for gold” and central bank buying “alone” will push the price of gold to $1,425 an ounce.

Goldman’s target price for gold is $1,450 an ounce. That represents double digit gains from today’s price of $1,315 an ounce, already a seven-month high. The last time gold topped $1,400 an ounce was briefly in early September 2013.

Retail and institutional investors are also bullish, with holdings of physically-backed exchange traded funds now the most valuable in seven years.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 26031.80 0.70%
S&P 500 2792.67 0.64%
NASDAQ 7527.55 0.90%
TSX 16013.01 0.08%
TSX-V 623.27 0.00%

Resource Commodities

Name Last Change
Gold 1327.60 0.31%
Silver 15.92 0.69%
Copper 2.96 0.060
Platinum 843.03 0.000
Oil 57.26 0.52%
Natural Gas 2.72 0.74%
Uranium 28.70 0.00%
Zinc 1.22 0.00%

@RSDigest ON TWITTER