Goldman Sachs has confirmed today (December 12th) that it is upping its gold price forecasts as concerns persist over the recent weakening in the US dollar, Reuters reports.
The world's fourth-largest bank holding company has increased its three-month forecast to $700 per ounce from $690, its six-month prediction to $785 from $730 and its 12-month view to $795 from $710.
In a research note, the firm quantified its decision by explaining that it maintains the traditional position that gold prices tend to move in the opposite direction to the dollar.
One section quoted by the news provider read: "We are raising our gold price forecasts in line with Goldman Sachs economists' currency revisions toward a weaker US dollar outlook.
"We have long held that gold trades inversely with the US dollar, which historically has explained over 90 percent of gold price movements."
The company's claims were echoed recently by Jonathan Davis, a UK-based chartered financial planner, who explained that he also expects gold prices to rise in the long term.
"In spite of the falls this autumn, the gold price is on a long-term bull run, which started in 2000," he said.
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