Last week Gold, erased its yearly gains on Federal Reserve announcement that it would soon be appropriate to raise interest rates. February Comex gold (XAUUSD:CUR) settled -0.44% at $1,789.25/oz.
Meanwhile, Goldman Sachs is telling investors to buy gold to protect their money from soaring inflation and interest rates.
Just weeks after tipping the far riskier Bitcoin, analysts at the Wall Street bank have sent out a note telling clients: ‘Gold: time to buy the defensive real asset.’
The precious metal is regarded to preserve wealth when rising inflation erodes the value of cash.
The US Federal Reserve signaled last week that an increase in interest rates could come in March to stem rising prices.
‘Gold has remained very resilient during the recent increase in US real rates,’ the investment banking giant said. ‘In our view, this is due to gold’s status as both an inflation-hedging and a defensive asset.’
Analysts have raised their six-month forecast to $2,050 (£1,526) a troy ounce. It is currently dealing at about $1,800.
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