Week ahead commodity report: Gold, Silver & Crude Oil price forecast: 22 - 26 june 2020 [video]
|Gold jumped to its highest in more than a month on Monday before retracing lower as investors sought the safe-haven metal after surging coronavirus cases intensified concerns over a delay in global economic recovery.
Rising infections in the United States and elsewhere dented hopes for a quick economic recovery and weighed on investors' appetite for riskier assets.
Geopolitical tensions also supported the safe-haven asset amid developments in Hong Kong, as details of a new national security law for the territory showed Beijing will have overarching powers over its enforcement.
Indicative of sentiment, hedge funds increased their bullish positions in COMEX gold and silver contracts in the latest week.
Goldman Sachs also raised its gold price forecast on Friday as it expects a rally in bullion to continue due to currency debasement fears and economic uncertainty caused by the coronavirus crisis.
The bank raised its three, six and 12-month gold price estimates to $1,800, $1,900 and $2,000 per ounce from $1,600, $1,650 and 1,800 per ounce, respectively.
The U.S. bank also raised its three, six and 12-month estimates for silver to $19, $21 and $22 per ounce from $13.5, $14 and $15 per ounce.
Spot gold prices have surged nearly 14% this year boosted by unprecedented central bank stimulus measures as the coronavirus outbreak wrecked economies.
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