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Gold prices edged higher on Thursday, buoyed by a weaker dollar and escalating tensions in the Middle East, while investors await more U.S. economic data that could shed light on the Federal Reserve’s interest rate outlook.
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Gold prices jumped more than 6% on Tuesday, putting the precious metal on track for its best day in 11 years, and Goldman Sachs believes the Federal Reserve’s latest stimulus package will prompt investors to seek out the safe-haven asset and drive prices even higher.
“Time to buy the currency of last resort,” Jeffrey Currie, Goldman Sachs’ global head of commodities research, succinctly summed up in a note to clients Monday night.
Gold has gained more than 12% in the last two days as the Federal Reserve on Monday pledged unlimited asset purchases to support the markets. Prices are rallying as investors believe gold will be the best alternative as the central bank’s actions lead to currency debasement and possible inflation.
