The international financial services company Goldman Sachs said in its latest report, on Tuesday, that gold has the highest potential for a near-term price increase, given its role as a favoured hedge against risk. In contrast, weak demand from China has resulted in a "more selective, less optimistic" outlook on other commodities.
"Imminent Fed rate cuts are poised to bring Western capital back into the gold market, a component largely absent of the sharp gold rally observed in the last two years," the firm said in its note 'Go for Gold'.
Spot gold has surged by 21% this year, repeatedly setting new records and reaching an all-time high of $2,531.60 per ounce on August 20.
Goldman Sachs has revised its gold price target to $2,700 by early 2025, extending its previous forecast of end-2024, due to the price-sensitive market in China.
“We believe that the same price sensitivity also insures against hypothetical large price declines, which would likely reinvigorate Chinese buying,” it added.
(By arrangement with livemint.com)
