Goldman raises gold forecast while retaining bearish outlook - BBG

The Wall Street giant, Goldman Sachs Inc. raised its forecasts for gold prices as it push backed Fed rate hikes prospects over the next year, while remaining bearish on the metal’s prospects.

The bank increased its three, six and 12-month forecasts to $1,200, $1,180, and $1,150 an ounce from $1,100, $1,050 and $1,000 respectively.

Analysts at Goldman Sachs noted, “While the upside risks to gold pricing appear relatively limited from here, we see a number of catalysts for gold prices to moderate, including a more hawkish Fed and ultimately U.S. policy rate divergence, corresponding with gradual dollar appreciation over the next 3-12 months.”