Gold prices have stayed strong above $2,300 an ounce as people wait for the Federal Reserve to hint it will keep its strict money rules longer than expected. Even though gold has faced some selling lately, Goldman Sachs is sticking to its positive outlook, saying gold can keep going up even if the Federal Reserve delays making borrowing money easier.
Nicholas Snowdon, who leads the research on metals at Goldman Sachs, explained that gold isn’t as affected by the Federal Reserve as it used to be. He mentioned that countries like those in Asia and some emerging markets are buying more gold because they’re worried about political tensions and currency values dropping.
Despite some ups and downs lately, gold prices are still up about 10% this year, even though they’ve dropped about 6% from their highest point. Snowdon thinks that even if interest rates stay high, gold will keep getting more valuable.
Snowdon’s positive words come after Goldman Sachs said gold could hit $2,700 an ounce by the end of the year, up from their earlier prediction of $2,300.
