Goldman Sachs Is Bullish on Gold in 2019

Gold prices (GLD) haven’t been going anywhere for the past few months. However, Goldman Sachs (GS) is still bullish on the metal.

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Goldman Sachs’s global head of commodities research, Jeff Curie, thinks that gold has been sold off lately due to overly optimistic views regarding the trade deal between the US (SPY) and China (FXI). As reported by CNBC, Curie said, “We actually think this is a pound-the-table time to be buying gold right now.”

Goldman Sachs is optimistic about gold. Goldman Sachs thinks that “gold’s safe-haven status will also likely see relative outperformance as late-cycle recession fears remain and several key central banks continue diversifying their reserve assets.” For gold, Goldman Sachs has a target price (NUGT) (GDX) of $1,450 per ounce for the next 12 months.

In March, Goldman Sachs turned positive on gold (IAU) for the first time in more than five years.

Goldman Sachs is advising investors to turn defensive due to its forecast of increased risks. Goldman Sachs recommends that investors go for high-quality stocks and gold. Goldman Sachs thinks that stock market (DIA) (QQQ) investors have reaped most of the gains in the markets this year.