It’s time for our roundup of the big investment banks and where they predict the gold price will go in 2019. Their forecasts, while as fallible as any others, are worth paying attention to for one reason.
These banks control enormous amounts of capital, so keeping an eye on where they stand vis a vis the gold price is worth monitoring.
So, presented here without further commentary, is a sampling of current institutional views on gold:
Goldman Sachs calls late-2018 gold prices ‘extremely attractive.’ "If U.S. growth slows down next year, as expected, gold would benefit from higher demand for defensive assets," Goldman said. Their most recent 2019 price target was $1,325/oz.
“We see gold likely repricing lower through the middle of next year, at which point the Fed’s policy will move into restrictive territory. The curve will invert, the expansion will slow and expectations of Fed easing will build. At this juncture, we would expect real rates to move lower and gold’s fortunes to reverse, as gold tends to benefit from consistent drop in real yields during the lead up to recessions and thereafter.” 2019 gold price forecast: $1,294/oz.
“The USD has on average depreciated in the latter third of past expansions but there is a lot of variation across cycles, so this is far from certain. In contrast, commodities and especially gold have tended to appreciate consistently.” 2019 gold price forecast: $1,250
BOFA Merrill Lynch
“Gold is set to surge over the next year as concerns deepen about the widening U.S. budget deficit and a tariff-driven trade...