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$2,300 in three months, according to Goldman Sachs

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Gold and its target: $2,300 in three months, according to Goldman Sachs

The war in Ukraine has once again turned Gold into the refuge par excellence for investors. But in the last days he has lost almost everything he gained, it remains in half a point only since the war began, having revitalized gold with gains up to a run of record highs set almost a week ago. The increase in sanctions against Russia had a great impact on the market, with the exponential increase in the price of oil to 131 dollars and reflected in those 2,078 dollars of maximum level that it reached last March 8.

After that, now the great unknown is to know if it will be able to recover again at levels above 2,000 dollars, in a state of maximum expectation, uncertainty and volatility for the financial markets. Something that has also led him to gain specific weight in its capitalization as the maximum stock market exponent, with an accumulated of 12.19 billion dollars, further strengthening its distance with the next on the list, in this case apple with 2.51 billion

Gold current asset capitalization

Gold current asset capitalization

The truth is that, the more the war becomes entrenched and complicates, the more active refuge grows for investors in very tense moments and great pressure for investors. Factors such as the change of course announced by Joe Biden to continue financing Vladimir Putin of the state of “permanent normal trade”, which would be seconded by a large part of the Western countries, with the European Union, Japan, Canada, and the United Kingdom le has led to improve its price. Also after the executive order of the US administration to prohibit imports of Russian vodka, its seafood and diamonds.

However, what experts say it that gold remains at very high volatility levels, as we saw last Friday with the record inflation data in the United States in February of 7.9%. This American arrival at prices never seen in the last 40 years led to a wave of purchases, although later gold do not hold levels above $2,000 which has become your resistance base right now.

In its price chart we see that the value has barely risen 0.50% since the war broke out and is already 9% from the highs of last March 8. With cuts of 4.13% in the last five days, but with increases of 2.44% in the month, 7.33% in the quarter of almost 5% per year that it still holds, after the great period of laterality experienced.

Annual gold price

annual gold price

In terms of forecasts, the main analysis houses have raised their expectations of an increase in their prices, above the historical maximums. men the case of Goldman Sachs establishes them with different time guidelines. For example, three months from now your precious target on the precious metal thus grows to $2,300 from the earlier 1950s. But this increase, far from being punctual, also materializes, six months ahead, with estimates of the cost of the ounce of a semester in the 2500 dollars from the previous 2050 and cWith an end of year 2022 with the same price compared to the previous 2,150 that the investment bank had estimated. In this way, a 25% increase in its price in the financial markets would be consolidated.

From Goldman, considering that the fundamental factor of this rally is fear, read in stock market terms: the growing geopolitical uncertainty unleashed by the Russian invasion of Ukraine, hence the increased demand for gold by consumers, investors and central banks.

They point out that the last time they saw all the demand drivers accelerating simultaneously was the period of the financial crisis between 2010 and 2011, when the increase in gold at a price of 70%.

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