Goldman Sachs has confirmed its gold price forecast has been increased for the second half of the year.
The US bank revealed that it now expects the value of the precious metal to reach as high as $1,388 (£893.50) from $1,300 an ounce on recent price activity.
"We believe the recent uptick is a result of investors positioning themselves for an increase in inflation rates and speculation regarding a potential military strike on Syria," the bank said in an equity research note published yesterday (September 2nd).
According to a report by the Economic Times, the bank said in the note that in the longer term it expects gold prices to ease.
It was explained that this is due to an improvement in US economic activity, as well as factors such as the reining in of accommodative monetary policy by the Federal Reserve.
Joni Teves, an analyst at UBS AG in London, recently told Bloomberg that the safe haven status of gold could become negatively affected in the coming weeks by the uncertainty over the Syrian civil war and doubt over a US military strike on the country's leader Bashar al-Assad.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.