Gold News

Goldman Sachs gold outlook hiked up

Investment bank Goldman Sachs has raised its spot gold price targets as the metal surged to its highest price for 27 years at the end of last week.

Adjusting its three-month outlook for the precious metal up $75 to $775 per ounce, the group showed a belief in the solid basis of gold bullion trading for upcoming months.

With its six-month outlook for the metal also up $75 dollars, now reaching as high as $800 per ounce, Goldman Sachs is not alone in banking on rising demand for gold.

"The momentum in the recent rally has been supported by continued gains in ETF exchange traded fund demand and high jewelry demand during the Indian wedding season," James Gutman of Goldman Sachs told the Financial Times.

Factors external to the credit crunch such as Indian jewelry demands are certainly impacting on gold prices, but closer to home the weakness of the dollar, hitting new lows against the Euro today, is making gold bullish.

Prices today remained close to the 27 year high registered last week, but the spiraling oil price so key to its rise softened slightly as Gulf of Mexico oil production returned to normal after storm disruptions.


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