Gold seen at $ 1250 in next 12 month

Economists at Goldman Sachs came out with their latest gold-price forecasts for next 3, 6 and 12 months.

Key Points:

  • For 3 and 6 months, looking for USD1200 / ounce
  • 12 months out, USD1250
  • Economists expect 3 Federal Reserve rate hikes in 2017
  • Assess the probability of a rate hike by June at 80%
  • Longer dated real rates in the US are expected to increase slightly, which will put some downward pressure on gold
  • Expect US equity prices rally to fade by the second half of this year
  • Increasing geopolitical & political risks (European elections, potential trade restrictions)
  • US economic-policy uncertainty to stay elevated