Goldman sees gold hitting record $1 480 in 3 months
NEW YORK - US investment bank Goldman Sachs Group Inc said it forecastgold prices rallying to a record $1 480 an ounce in three months ondeclining U.S. real interest rates.
The bank said in a note sent on Friday it still expects gold prices toreach a peak in 2012 as U.S. interest rates are set to rise with theeconomy continues to recover. Goldman has a six-month gold view at $1565 an ounce, and a 12-month forecast at $1 690 an ounce.
"Given the decline in U.S. real interest rates, we see the recentretracement in gold prices as offering a good buying opportunity, andmaintain our long gold trading recommendation as we expect gold to rallyto our three-month price target of $1 480 an ounce," it said.
Bullion rose more than 1 percent Friday to $1 418 an ounce on lingeringpolitical uncertainty despite Libya's declaration of a cease-fire. Ithit a record high of $1 444,40 an ounce on March 7.
"Optimism over the state of the global economic recovery at the startof the year, which drove U.S. real interest rates sharply higher, hasbeen tempered by the ongoing events in the Middle East and North Africaand Japan...setting the stage for the next gold price rally," Goldmansaid.
https://www.miningweekly.com/article/goldman-sees-gold-hitting-record-1-480-in-3-months-2011-03-18