Goldman Sachs think gold could move higher from here

New York (Aug 24)  U.S. investment banking giant Goldman Sachs has said gold has the potential to move higher in their latest commodities note. The team said a weaker USD and emerging market demand recovery could be an important factor with the precious metal.

The research note added, "for gold to move materially higher though, there has to be a general risk-off event which will trigger demand for defensive inflation hedges such as the return of inflation worries”

Reiterating the original stance the bank said “see XAU/USD moderately higher amid a weaker USD and emerging market demand recovery.”

Looking at the technicals on the current chart the price has hit the $1800/oz area again. After that massive downside rejection at the purple area, the price has popped back up nicely. Looking ahead, the next resistance zone could be the orange area at $1835/oz. This was the previous wave high and also provided some good support back in September 2020.

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