Goldman Sachs: buying gold was up to $1800

category:Finance
 Goldman Sachs: buying gold was up to $1800


Analysts at Goldman Sachs pointed out that the quantitative easing policy announced by the Federal Reserve in November of that year was a turning point in 2008. We are beginning to see a similar pattern [as in 2008] as gold prices have stabilized in the past week and [Monday] rose as the Fed announced the launch of new liquidity injection tools, they said

Gold prices are facing a perfect environment, first with the Federal Reserves possibly unlimited stimulus package, then with some Swiss gold refineries shut down due to the new crown virus, Carlo Alberto decasa, chief analyst at activtrades, wrote in a study released on Tuesday

Jim Luke, a fund manager at Schroders, believes that higher consumer prices are good for gold, saying that while interest rates may remain close to zero, governments are likely to use fiscal policy to push inflation back to target levels.

There may be many forms of fiscal policy, and we dont rule out direct intervention in the form of helicopter money . Therefore, we cant think of any more bullish environment for gold prices.

John ciampaglia, chief executive of sprott asset management, said: its like the government and the central bank launching the printing presses at full speed in 2008 and 2009.

Traders said gold was also boosted by the weakening dollar and other measures taken by the Fed, particularly by increasing the amount of currency swaps with other central banks to increase the availability of the dollar in the financial system. A weaker dollar is seen as good for gold because it reduces the cost to other currency holders of gold. On Tuesday, March 24, the price of gold surged by $101.4 in a rare day, while Comex gold rose 6.47% to close at $1669. Despite outperforming other assets, gold also suffered during the recent rush of market participants into the dollar, falling more than 12% from a peak of around $1700 an ounce in early March to $1460 last week. Gold prices began to pick up Monday, up more than 4%. Source: CFA editor in charge: Yang bin_nf4368

Traders said gold was also boosted by the weakening dollar and other measures taken by the Fed, particularly by increasing the amount of currency swaps with other central banks to increase the availability of the dollar in the financial system. A weaker dollar is seen as good for gold because it reduces the cost to other currency holders of gold.

On Tuesday, March 24, the price of gold surged by $101.4 in a rare day, while Comex gold rose 6.47% to close at $1669.

Despite outperforming other assets, gold also suffered during the recent rush of market participants into the dollar, falling more than 12% from a peak of around $1700 an ounce in early March to $1460 last week. Gold prices began to pick up Monday, up more than 4%.