Investors should 'go for gold' as Fed cut looms: Goldman
Published On Sep 3, 2024, 6:26 PM
Goldman Sachs is advising investors to invest in gold as it remains a strong hedge against geopolitical and financial risks. Gold prices are currently around $2,515 per ounce and have risen nearly 22% this year. The firm maintains a price target of $2,700 per ounce by 2025, supported by expected Federal Reserve rate cuts and ongoing purchases by emerging market central banks. Analysts highlight the potential for gold prices to be buoyed by geopolitical tensions and central bank buying, even though historically, gold tends to perform poorly in September. The market is monitoring the upcoming Federal Reserve meeting for indications of possible rate cuts, which could further influence gold prices.
Stock Forecasts
GLD
Positive
Gold is likely to continue being a preferred investment as the Fed hints at interest rate cuts which generally supports gold prices. This environment of uncertainty, driven by geopolitical risks and central bank actions, aligns with the strong demand for gold as a safe haven asset.
IAU
Positive
Gold's historical trend of declining in September might pose short-term risks. However, the broader outlook remains bullish given the current macroeconomic conditions and potential for further central bank buying.
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