Goldman Sachs: sustained gold growth is within reach
Goldman Sachs analysts believe the commodities sector is on track for "superior total returns" in 2023, outperforming other asset classes. In particular, gold will be "on the verge of sustained growth".
Experts predict that gold will benefit from the weakening U.S. dollar, as well as the global trend towards dedollarization, i.e. the partial or complete replacement of the currency in international transactions.
Gold is likely to be on the cusp of sustained growth, as dedollarization has a positive effect on the precious metal's value. Meanwhile, the U.S. Federal Reserve (Fed) has been promoting the idea of monetary easing, thereby slowing the pace of rate hikes, and allowing ETF assets to stabilize. This is reported by analysts at Goldman Sachs. In their view, a steady reversal in the greenback sets the stage for a fairly substantial rise in commodity prices.
At the present time, the cost of gold is firmly entrenched at $1,900 dollars per ounce. That mark is already very close to a possible maximum predicted by analysts. That kind of dynamics is driven by noticeable dollar weakening and decrease in the yields of the U.S. government bonds.
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