45.79 F
London
November 9, 2024
PI Global Investments
Gold

Goldman Sachs Says Central Banks To Drive Gold Price


Amid the BRICS de-dollarization efforts, Goldman Sachs has predicted that Central Bank acquisition will drive the gold price even higher, according to a Bloomberg report. Indeed, the metal has reached record highs thus far in 2024. However, the continued desire to increase gold holdings will only continue that trend.

The geopolitical landscape has driven the gold demand high on an international level. Specifically, various central banks throughout the world are seeking increased collections of the metal to protect from a potential US dollar collapse. Subseuqnlety, diversification through gold has become a common theme and one that will drive the asset’s value, according to the bank.

gold bars

Also Read: BRICS: China Might Hold 5,300 Tons of Gold To Boost De-Dollarization

Central Banks to Drive Gold Price as US Dollar Defense

The last month has been massively important for the price of gold as an asset. Since the start of March, it has reached a record-high figure on three different occasions. Its highest level came just a week ago when it surpassed the $2,200 mark. For many, that trend does not appear to be slowing any time soon.

Amid the BRICS de-dollarizaiton commitment, Goldman Sachs has predicted Central Bank acquisitions will continue to drive up the price of gold and other commodities. Moreover, the continued effort to increase holdings is driven by the desire to diversify government holdings away from the US Dollar.

brics goldbrics gold
Source: Twitter

Also Read: US Monitoring BRICS Digital Currency Push Amid Dollar Decline

According to a report from Bloomberg, Goldman Sachs predicts a 15% increase in commodity returns. This includes things like gold and oil purchases. Moreover, they identified interest rate cuts and geopolitical risks as the driving factors of commodity demand. Specifically, increased demand for things like gold.

The report mirrors an analysis that was written in February, where the bank predicted a 12% increase in gold. Then, the investment bank noted Central Bank acquisition and “geosocial tensions” as the driving force. The firm specifically identified China and India as the leading purchasers of gold. This is due to the alliance’s continued diversification from the US dollar, and promotion of both local currencies and other assets.



Source link

Related posts

Nupur Shikhare Radiated Glamour In A Gold Brocade Blazer And Black Trousers For His Sangeet Wedding Ceremony With Bride Ira Khan

D.William

Gold prices reach all-time highs: Which European-listed stocks may benefit?

D.William

Colorado teen receives kidney donation and “Pot of Gold”

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.