US investment bank Goldman Sachs recently raised its forecast for gold to $2,500 an ounce by the end of 2022. The reasons for the appreciation of the precious metal are the high likelihood of a recession in the United States. Recall that at the end of last year, quotes of the yellow metal fell by about 4%.
The bank has long been positive about gold, and this latest increase in the forecast for the precious metal rate is another sign that Goldman Sachs sees potential for higher quotations.
The bank's experts believe that the risk of an increase in the inflation rate may become a strong factor, which will lead to an increase in the price of the yellow metal within 2022. Inflation expectations could increase as the rise in the consumer price index continues. Inflation did not turn out to be a temporary phenomenon, as previously suggested at the Fed.
With inflation rising, gold is likely to rise in price. This is because the yellow metal is a physical asset, not someone else's obligation. Therefore, inflation cannot affect the lowering of the value of precious metal, as, for example, in the case of bonds and stocks.