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Gold prices rose on Monday after posting two consecutive declines, during which it was able to maintain the $1,800 level.
Although the yellow metal did not yet restore its highest level in nine years, where it closed last Wednesday, gold futures for August delivery increased by $12.20, or 0.7%, and settled at $1,814.10 per ounce.
The precious metal’s gains were supported by the decline of the US Dollar (USD) against major currencies, although the Dollar Index (DXY) has narrowed its losses to 0.16%.
Spot gold is trading near $1,804 per ounce, up by around 5% for the day.
Goldman Sachs has raised its forecasts for gold prices during 2020, according to a recent note.
The bank sees gold prices at $1,800 per ounce during the next three months, at $1,900 for the coming six months, and at $2,000 a ton for the coming 12 months.
Goldman Sachs further explained that “gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates.”
“Simultaneously, we see a material comeback from emerging market consumer demand, boosted by easing of lockdowns and a weaker Dollar.”
The bank expects a per ounce price average of $1,740 in 2020 and $1,988 in 2021.
