Analysts remain bullish on gold.
UBS for example believes gold could run even further and remain high “for longer than expected” on global uncertainty, as noted by CNBC.
The analyst added the firm raised its forecast for gold next year from $1,850 to $2,100. “An environment of negative real interest rates and global uncertainties, such as the upcoming U.S. presidential election, are among the reasons that have pushed investors to build up their gold holdings.”
In addition, former Goldman Sachs’ Chairman and CEO Lloyd Blankfein said, “It has been so long since these metals have played a role in financial markets as a store of value,” as quoted by Kitco. In addition, earlier this year, the firm said we’ll see higher gold prices on low real interest rates and currency debasement concerns.
Even Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold.
“In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments,” says Bloomberg.