Goldman Sachs, the leading financial giant, has issued a new research note. The note comprises new details on gold and how the AUX is emerging as the second-best-performing asset after crypto.
The analysts have also shared insights on gold being an incredible hedge against changing geopolitical narratives and how a new price target is already in sight for gold to claim and achieve.
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Fresh Price Target For AUX
Current Performance And Price Target
In its new report, Goldman Sachs has shared a new price target for gold. Gold is up 22% this year and has recently crossed the $2500 mark. At press time, the precious yellow metal is at $2496, up 0.06%.
Hedge Against Federal Reserve Rate Cuts
Goldman Sachs analysts have also shared how the precious metal is the ultimate hedge against the looming federal reserve rate cut scenario, which may help safeguard investor assets and sentiments. The financial giant has strongly urged investors to opt for gold as an effective tool to fight inflationary pressure and the crisis.
“Our preferred near-term long-term is gold. It remains our preferred hedge against geopolitical and financial risks, with added support from imminent Fed rate cuts and ongoing EM central bank buying,” as shared by Goldman Sachs analysts.”
Future Price Predictions
According to the leading analysts at the firm, a new price target has been set for AUX for 2025. Per the experts, gold may surge to $2,700 if the present market momentum continues to fuel Gold’s surge.
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Federal Reserve and Gold: An Undeniable Connection
Impact Of Interest Rate Cuts
Gold has often been considered an incredible hedge in times of financial crisis and turmoil. Recently, Jerome Powell, the Fed Chair, made new comments on how the interest rate cut scenario may finally materialize this September.
Effect On The Dollar And Gold Prices
In simpler terms, once the rate cuts are announced, the banks will lower borrowing costs, which may project the dollar as an unattractive asset to invest in on a global radar. This may propel a decrease in US stocks and assets, ushering in a surge in the prices of the precious yellow metal.
Analysts’ Views On Gold’s Importance
Goldman Sachs analysts have already outlined the importance of the yellow metal and how it can prove to be a perfect hedge during such stark market times.
Per Rashad Hajiyev, a notable financial analyst, Gold is already on its way to spiking and trading at a higher pedestal of $3,000 soon.
“Gold is in the advancing cycle, and so far it has rallied 23% after breaking out in late February 2024. Back in 2019, Gold formed a similar breakout and rallied 50% within 14 months.
So the present rally has a lot of room with my minimum target of $3,000.”
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