Investment bank Goldman Sachs on Tuesday, 28. in July, the letter informed customers about the increase in the price of gold and announced the risks associated with the status of the US dollar. This is what Bloomberg reports.
The bank stressed the status of gold as a “currency of last resort” in conditions of economic uncertainty and raised the price of gold to $ 2300 per ounce.
Goldman Sachs links the historic peak in the price of gold to “the potential shift of the US FRS to the side of inflation trends in the face of rising geopolitical tensions, heightened political and social uncertainty in the US and the second wave of Covid-19”.
“Together with the record high level of accumulated debt of the US government – real concerns about the prospects for the US dollar as a reserve currency begin to arise,” – the letter said. The bank said that the risk of falling in value is increasing due to the growing debt created by politicians inclined to fight the economic impact of Covid-19.
“Gold is the last instance – especially in the current situation, when governments devalue their fiat currencies and set interest rates at record low levels,” the letter said. “In view of the upcoming lowering of interest rates in the US – we recommend again (as in March) to buy gold”.
Since the beginning of the year, gold has grown by more than 27% and is currently trading at about $1940 per ounce.