Gold prices are expected to rise further as production of the precious yellow metal is expected to fall again this year.
Goldman Sachs has announced an increase in its gold price forecast. It has upped its three-month prediction from $700 per ounce to $1,000 per ounce.
Gold price is currently around the $900 per troy ounce mark and some commentators such as US equity manager, Francois Moute, expect it to hit the $1,600 level in the next year.
Goldman Sachs has become the latest to up its forecast in the past two weeks, following similar moves by Morgan Stanley and UBS, which have revised their predictions twice.
An upward pressure on gold prices is anticipated as its production is slated to fall further this year.
The precious metal is currently benefitting from the global turbulence and the fact that investors have reposed their faith in the yellow metal as against other supposedly safe assets.
Gold has emerged as the best investment option in times of economic uncertainty like the one confronting the globe currently.
