Goldman said the gold price jump
Driven by a possible shift of the US Federal Reserve towards policies that increase inflation, taking into account political tensions and expectations of high rates of coronavirus infection.
The increase in purchases in safe havens has pushed gold prices in the spot trading to rise 27 percent since
Beginning of the year, the precious metal rose to a record high of $ 1980.57 on Tuesday.
Goldman Sachs said, “We have long held that gold is the currency of last resort, especially in an environment such as the current environment where governments devote their currencies and push real interest rates to their lowest levels ever.”
He added that real concerns had begun to emerge about the continuity of the US dollar as the reserve currency.