Goldman Sachs Bullish On Gold: Wall Street Giant Targets $2,700 By Early 2025, Driven By Geopolitical Risks, Fed Rate Cuts
Portfolio Pulse from Piero Cingari
Goldman Sachs is bullish on gold, projecting a price of $2,700 per troy ounce by early 2025 due to central bank demand and expected Fed rate cuts. The SPDR Gold Trust (GLD) has outperformed tech stocks, and gold is seen as a hedge against geopolitical risks. September's stock volatility may further boost gold's appeal.
September 03, 2024 | 2:39 pm
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POSITIVE IMPACT
Goldman Sachs projects gold prices to reach $2,700 by early 2025, driven by central bank demand and Fed rate cuts. The SPDR Gold Trust (GLD) has rallied 21% YTD, outperforming tech stocks.
Goldman Sachs' bullish outlook on gold, driven by central bank demand and Fed rate cuts, directly impacts GLD, which tracks gold prices. The 21% YTD rally and outperformance against tech stocks highlight GLD's strong position.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
The SPDR Gold Trust (GLD) has outperformed the Nasdaq 100 index, tracked by QQQ, highlighting a shift in investor preference towards gold amid geopolitical risks and expected Fed rate cuts.
The outperformance of GLD over QQQ suggests a shift in investor preference towards gold, driven by geopolitical risks and anticipated Fed rate cuts, potentially impacting QQQ negatively in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
September is historically a weak month for the S&P 500, tracked by SPY, with average negative returns. This trend may push investors towards gold as a safe-haven asset.
Historical data shows September as a weak month for SPY, with negative returns. This may lead investors to seek safety in gold, potentially impacting SPY negatively.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 60