Bullish Goldman Sees Gold Prices Hitting 6-Year Peak in 2019

SEATTLE (Scrap Monster): The New York City-headquartered multinational investment bank and financial services firm Goldman Sachs has maintained bullish outlook for gold price in 2019, backed by healthy physical demand in two major gold markets- India and China, along with strong buying by world central banks.

According to Goldman, the gold prices are likely to touch $1,450 per ounce in 2019.This is more than 10% higher than the current price of around $1,315 per ounce. It was in September 2013 that gold had surpassed $1,400 per ounce level, prior to this. Also, Mad Money’s Jim Cramer stated that gold is likely to surge to $1,400-$1,500 levels. He recommended investors to add gold to their portfolio.

Meantime, Refinitiv GFMS expects gold prices to average at around $1,292 per ounce in 2019, on assumptions that the physical markets such as jewellery are likely to remain subdued during the year. This is slightly higher when compared with the average gold price of $1,268 per ounce in 2018.

The quarterly report published by the firm states that gold prices may continue to benefit from the economic uncertainty and slowdown in the U.S. economy. However, higher gold prices may result in subdued performance by the physical gold markets. The demand in China and India are likely to decline this year. Incidentally, global jewellery consumption showed signs of weakness, falling by almost 3% during the fourth quarter of 2018.