Goldman Sachs sees gold soaring 9% in 2020 as Trump’s trade war and recession fears grip investors

Goldman Sachs sees gold soaring 9% in 2020 as Trump’s trade war and recession fears grip investors

The price of gold could jump 9% to $1,600 per ounce by the end of March, according to Goldman Sachs.

Goldman analysts highlighted political uncertainty, recession fears, emerging-market growth, central banks' gold buying, greater discussion of Modern Monetary Theory, and other factors underpinning a higher gold price.

"We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand for gold as a defensive asset," the analysts said.

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The price of gold could jump 9% to $1,600 per ounce by the end of March, according to Goldman Sachs.

The investment bank stood by its three-month, six-month, and 12-month forecasts in a research note last week. It highlighted as factors underpinning the price: political uncertainty, recession fears, high household savings, low interest rates, an equities selloff, growth of emerging markets, moderate growth in mine output, robust central-bank purchases, and greater discussion of Modern Monetary Theory, among others.

Goldman's analysts said they "remain optimistic" about gold going into 2020, given investors view it as a safe or "haven" asset during turbulent times.

"We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand for gold as