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.
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