Markets

Goldman Sachs Expects Gold to Rocket Well Above Its All-Time Highs in 2020

With the coronavirus pandemic surging and the details of a new U.S. stimulus package proposal weighing heavily on investors' minds, gold soared to an all-time high Monday, reaching $1,932 per ounce. And Goldman Sachs expects the precious metal to glitter even more brightly in investors' eyes over the next year, it will reach $2,300 per ounce by July 2021. The lustrous forecast is 15% higher than its previous forecast, issued in mid-June, of $2,000 per ounce.

According to analysts at the investment bank, a variety of causes will combine to propel gold prices higher, including a "potential shift in the U.S. Fed toward an inflationary bias against a backdrop of rising geopolitical tensions, elevated U.S. domestic political and social uncertainty and a second wave of Covid-19 related infection." 

A pyramid of gold bars sits on rows of other gold bars.

Image source: Getty Images.

The weakening of the dollar represents another factor for the bank's forecast. "Combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge."

UBS shares a similarly optimistic outlook on gold, anticipating that gold will reach $2,000 per ounce by the end of September. But the most bullish take on the asset from the big-bank sphere comes from Bank of America, which is holding fast to a forecast that it issued in April -- that gold will soar to $3,000 within the next 18 months.

With gold continuing to hit new highs, investors may find that they have a hankering to get some exposure to it in their portfolios. Fortunately for them, there are several gold-oriented stocks that represent compelling opportunities at the moment.

10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 2/1/20

The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More