- Wall Street Investment predicts that gold ounce will cost $ 3700 by the end of this year, up from previous expectations of $ 3,300Quoting more central banks that buy precious metal with higher ETF flows. Donald Trump’s presidency was a grace of gold that is now benefiting from the uninterrupted economic expectations raised by the trade war of his administration.
In times of great uncertainty, a few assets can exceed gold. The precious metal was a safe haven for decades – and this year, it was operating the bull that bullied bullies with huge gains.
The Wall Street Bank for Investment in Goldman Sachs is now arguing that the price has an additional field of operation thanks to the increasing possibility of global economic stagnation ignited by the Trump administration’s repeated spread when it comes to punitive tariffs.
Analysts wrote on Monday: “This week’s pressure in the American bond market and the Gold Mobilization today, and yesterday we are convinced that gold is in a unique position to hedge the risk of recession.”
They estimate that it can jump from its previous 3300 dollar expectations to 3700 dollars by the end of the year, supported by an increase in their expectations for the purchase of central banks-in part it searches for the reserves at risk through Diversification from the dollar– As well as more flows in gold exchange boxes.
The fierce gathering was surprised to Goldman, who properly expected its lowest level in November about 2,600 dollarsAn attractive entry point. However, at the time, the bank has never expected anything more than $ 3,150 by the end of 2025. Thanks to the Trump administrationApparentlyFrom its trade agenda, the market has already detonated this month.
Only in the extremist scenario, Goldman Sachs expects that the price of precious metal will reach $ 4,500 an ounce.
Political concerns about the safety of the golden reserves stored in us
Gold pushed itself to the forefront of the political agenda. President Trump said he wanted it Gold review In Fort Nox, while Germany, which carries the second largest reserves after the United States, can Return gold in the homeland Reduce the Federal Reserve Regional Bank in New York.
However, there are defects to own gold: first of all, the cost of alternative opportunity. Unlike treasury bonds or money market boxes-which are very safe investments-there is no benefit on alloys.
Moreover, institutional investors can see the returns, the result of storage costs is diminished. In traditional bull markets where economic growth is healthy, there is no reason to gain weight in a balanced portfolio.
However, Trump’s tariff policy has made it impossible for companies to plan real realistic for the coming weeks and even months, which raises excitement Fears of the imminent global recession.
In this favorable environment for gold, investors who are looking for further exposure to the option to buy gold funds or even the same material metal.
Very ups
Mining shares such as led by the likes of Denver NeumontBarrick Gold of Canada and Anglogold Ashanti in South Africa are another way to profit from high price, according to Peter Chef.
“It is possible that he can now provide an absolute upside down head since their cost of energy – the main inputs that erodes profits – decreases simultaneously.
“Really for the first time in my career, I really tell people now don’t buy material gold,” ChefHe said. “When you buy gold mining companies, you buy the gold that is still on the ground – and the gold in the ground was not cheaper in all history than gold above the ground.”
For this particular reason, allied gold in Canada on MondayBackedOut of a dealFebruaryTo sell a 12 % stake to an investment company in Abu Dhabi after the price increased in alloys as well as its own shares after the prices he agreed to just a few weeks ago.
This story was originally shown on Fortune.com
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