1️⃣ It’s because of America.
2️⃣ Part of the rise in gold prices is due to the consequences of anti-Russian sanctions.
3️⃣ Another part of the rise in gold prices is due to the United States’ problems with fiscal discipline.
4️⃣ Yet another part of the rise in gold prices is due to concerns about the dollar financial system.
5️⃣ The main buyers [note: of physical] gold are central banks: China, India, Singapore, Qatar, Turkey, and even Poland.
6️⃣ In the baseline scenario, they expect gold to hit $2700 per ounce by the end of the year.
If the U.S. continues with sanctions at the current pace (as it has been since 2022), then Goldman expects an additional +16% increase.
If the U.S. stages another mini-budget crisis (like the circus with the “debt ceiling”), then Goldman expects an additional +14%.
Excellent prospects.
The Goldmans also do not have a crystal ball, they do not know the future, and they have no guarantees (or investment recommendations), but the direction of movement (and the logic of their math model) is likely close to reality.