Goldman Sachs remains strongly bullish on gold: it will soon rise to $2700!
Goldman Sachs strongly recommends investing in gold in its latest report, expecting the price of gold to rise to $2700 in early 2025. The reason is that weak demand in Asia will affect other commodities. With the expected rate cut by the Federal Reserve, Goldman Sachs predicts that Western capital will flow back to the gold market, thereby driving up the price of gold. In addition, Goldman Sachs holds a cautious attitude towards crude oil and industrial metals, expecting an oversupply of crude oil to exceed expectations, with price forecasts for copper and aluminum postponed to after 2025
In the latest research report, Goldman Sachs advises investors to "bet on gold" as weak Asian demand will drag down prices of other commodities.
Goldman Sachs believes that gold is seen as the preferred tool for risk hedging, and gold has the greatest potential for recent price increases. At the same time, weak Asian demand has led the bank to be "more cautious and less optimistic" about other commodities.
Analysts at Goldman Sachs stated in a report titled "Bet on Gold" on Monday:
"The upcoming Fed rate cut will prompt capital inflows back into the gold market in the West, which is a key factor missing in the significant gold price increase over the past two years."
Spot gold has risen 21% year-to-date, hitting consecutive record highs, and reaching a historic high of $2,531.60 per ounce on August 20.
Goldman Sachs has adjusted its gold price target to rise to $2,700 by early 2025, previously forecasting that gold could reach this level by the end of 2024. The reason for this adjustment is that the price-sensitive Chinese market is digesting the rise in gold prices.
However, Goldman Sachs stated, "We believe that this price sensitivity can also withstand a significant price drop assumed, which may re-stimulate Chinese buying."
Regarding crude oil, Goldman Sachs is more cautious, expecting a narrowing of the crude oil deficit this summer, with oversupply in 2025 slightly higher than expected.
The bank lowered its average Brent crude oil price forecast for 2025 by $5/barrel last week, citing weak Asian demand.
Goldman Sachs believes that there is a clear downward trend in the global natural gas market, as the upcoming increase in global liquefied natural gas supply capacity will lead to a decline in European natural gas prices (TTF).
The bank has postponed its expected copper price of $12,000/ton by the end of 2024 to after 2025, pointing out that the significant reduction in copper inventories they expected may be much later than anticipated.
The bank now expects the average copper price in 2025 to be $10,100 per ton, much lower than the previous forecast of $15,000, as despite issues in major copper-producing countries' mines, refined copper production remains high.
Goldman Sachs remains less certain about the outlook for other industrial metals, delaying its target of reaching $2,600/ton for aluminum by the end of 2024 to the end of 2025, and lowering its 2025 price forecast to $2,540. The bank also maintains a bearish view on nickel