In a recent note, Goldman Sachs views commodities – especially gold – as worthy of some investment dollars at the present time.
The Commodities ETF XLB is not showing much strength but GLD appears to have pulled back to an important support level at around $182 a share.
I have a Real-Time Alert set for a shade over $183 so keep an eye on this page here Real-Time Alerts for an indication this price has been exceeded.
Here is a summary of Goldman Sachs note and the weekly chart of GLD is shown below:
Goldman Sachs, making a financial move on Thursday, revised its gold price predictions, dubbing it the optimal safeguard against financial uncertainties. The bank maintained its optimistic outlook on commodities, emphasizing that the ongoing banking crisis hasn’t yet spilled over into tangible markets. In a notable adjustment, it increased its 12-month gold price target to $2,050 per ounce, up from the previous estimate of $1,950. This adjustment aligns with similar moves by other institutions like Citi, ANZ, and Commerzbank, all of whom have also revised their forecasts. Goldman Sachs conveyed its confidence, stating, “We anticipate robust support for the market, driven not only by ETF (exchange-traded fund) inflows after Fed fund rates reach their peak but also by a more pronounced ‘Wealth’ effect from the East. This is expected as the USD depreciates towards the year-end due to yield compression, coupled with strong EM GDP growth from the effects of China’s reopening.”
