Why Goldman Sachs Is Telling You To Long GOLD | And Why You Should Listen
New upgraded target from Goldmans on the precious metal...
If there’s someone who has absolutely nailed this bull run, that’s Goldman Sachs commodities desk.
First they targeted 2300 early this year.
Then upgraded to 2700.
And now they raised the stakes further…
2900 is their new target.
Yes! Nailed it there.
But why is Goldmans now upping to 2900?
To make it simple…
There are three main reasons to be long the precious metal:
Global interest rates will keep dropping. As they drop, GOLD shines brighter.
Central banks are on a buying spree, and they're not stopping. So, demand isn't going anywhere.
Geopolitical and recessionary risks, because GOLD offers an attractive hedge for both of those.
In other words…
The perfect context for the precious metal to keep trending higher.
If you don’t own GOLD, you know neither history nor economics.
Ray Dalio’s quote right there, fits well 😉
Anyway, here’s the key snippet from Goldman Sachs:
Central banks (particularly China) have been snapping up GOLD like it’s on discount.
We’re talking about 730 tons so far this year up until July alone!
From China alone!
To give you some context, that’s roughly 15% of global annual production.
Yes!
It’s quite a bit of demand.
These big deals are happening behind the scenes (in the OTC market) and they have been driving the rally since 2022.
And?
And they will continue to do so.
With that said…
In early March we said expect GOLD at 2300 this year.
Then mid April we adjusted to expect GOLD at 2700 this year.
And well…
Now we can say expect GOLD at 2900 early next year.
Alright.
Sweet and straightforward 😉
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