Precious metals extend inflation driven rally into second day
Goldman Sachs sees $2500 gold potential by end of 2022

(USAGOLD – 4/13/2022) – Precious metals extended yesterday’s inflation-driven rally into its second day as crude oil pushed over the $100 mark, the Japanese yen hit 20-year lows, and concern deepened about 1970s-style stagflation. Gold is up $12 at $1981. Silver is up 35¢ at $25.76. Both are knocking on the door of psychologically important levels – gold at $2000 and silver at $26. Goldman Sachs has been at the vanguard of Wall Street firms predicting a bull market in commodities, all the while giving special attention to gold. With commodities now on the march and gold up almost 10% year to date, we thought it might be a good time to revisit a recent Bloomberg interview of Jeff Currie, Goldman’s head of commodities research. In that interview, he predicted gold would hit $2500 by the end of 2022.

“It’s a perfect storm for gold right now,” he said. “There’s three legs to this story. One, you have strong investor demand for gold over concerns about inflation, recessions, and downturn in places like Europe. The second leg is central bank buying … and with the situation in Russia, they’re likely to accumulate dollars in reserves they can’t do anything with. What can they do with it? Buy gold. Then you have central banks in places like China and Turkey diversifying for de-dollarization reasons. Then you have diversification reasons in places like Brazil and India.”

Gold and silver price performances
(%, year to date)

Chart courtesy of TradingView.com