Bloomberg News: Gold Hits Highest Since 2013 as Goldman Backs Bullion in Crisis

January 06, 2020

Article by Elena Mazneva and Ranjeetha Pakiam in Bloomberg News

Gold surged to its highest since 2013 as rising tensions in the Middle East stoked demand for havens, with Goldman Sachs Group Inc. seeing more room to run. Palladium extended gains to a fresh record.

Bullion neared $1,600 an ounce after Tehran said it would no longer abide by any limits on its enrichment of uranium following the killing of General Qassem Soleimani. President Donald Trump said he’s prepared to strike Iran “in a disproportionate manner” if it retaliates against any U.S. target.

Gold may prove a better bet than oil amid rising tensions, according to Goldman analysts.

“History shows that under most outcomes gold will likely rally to well beyond current levels,” analysts including Jeffrey Currie and Damien Courvalin said in a note. That’s “consistent with our previous research, which shows that being long gold is a better hedge to such geopolitical risks.”

To read this article in Bloomberg News in its entirety, click here.

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