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.

Read full article

Stock Forecasts

GLDView GLD chart on TradingView

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.

IAUView IAU chart on TradingView

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.

Related News

Gold is a 'link to reality' for a lot of consumers: Judy Shelton | Fox Business Video

Independent Institute senior fellow Judy Shelton discusses the state of the U.S. economy and the importance of the 'gold standard' on 'Making Money.'

GLD

The fraught battle over the holy grail of shipwrecks

Oct 2, 2024, 7:04 PM

Colombia and a US firm are fighting over a shipwreck in the Caribbean Sea that could be worth $18bn.

GLD
EWC

5 reasons why gold is a hot commodity

Sep 26, 2024, 9:40 AM

Gold remains a sought-after portfolio investment to help mitigate losses and remain a potential long-term source of return while fiat currencies and other materials may struggle.

GLD
GDX