Investors Should Opt For Gold As FED Cut Looms Over: Goldman Sachs

The leading financial behemoth, Goldman Sachs analysts, has finally issued a new statement. In a newly issued research note, they shared how the looming Fed rate cut expectations may materialize sooner and why investors should pivot to gold to safeguard their investments.

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AUX As The Ultimate Safe Haven Asset

Goldman Sachs analysts have shared new insights on gold. The analysts shared how the yellow precious metal is their preferred choice for a long-term investment.

As Fed rate cut expectations hover over the space, with Powell considering cutting rates this month, the market is bracing for a fierce impact. In this wake, Goldman Sachs has developed a new research note to ease investors and help them establish a common ground.

“Our preferred near-term long is gold. It remains our preferred hedge against geopolitical and financial risks, with added support from imminent Fed rate cuts and ongoing EM central bank buying,” as shared by Goldman Sachs analysts.

On the other hand, gold futures are currently hovering at the $2,515 level/ounce, consistently rising and spiking up to maintain a solid price level. The yellow metal has recently reached an all-time high of 22%, which makes it the second-best-performing asset.

Gold has become a leading asset, purchased consistently by central banks worldwide. The changing geopolitical narratives are compelling banks to safeguard their assets, the primary element fueling gold’s value. With the September rate cut expectations brewing, gold is currently considered the best asset to invest in and secure returns from.

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New Price Target For AUX Set By Goldman Sachs

Goldman Sachs has also issued a fresh price target for gold. The recently issued research note shared how Gold may surge to $2,700 by the year 2025.

Similarly, another notable analyst, Rashad Hajiyev, took to X to share a compelling new insight. Hajiyev said gold is trying to set a new price pattern, helping it surge to $3000.

“Gold is in the advancing cycle, and so far it has rallied 23% after breaking out in late February 2024. Back in 2019, Gold formed a similar breakout and rallied 50% within 14 months. So the present rally has a lot of room with my minimum target of $3,000.”

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