Goldman Sachs Predicts Bullish Gold Prices Amid Strong Dollar

According to BlockBeats, on December 11, two members of Goldman Sachs' research department expressed optimism about gold prices, even as the U.S. dollar continues to strengthen over the long term. Their analysis indicates that U.S. policy interest rates are the primary driver of investor demand for gold ETFs, with the dollar's valuation playing a less significant role. The strengthening of the dollar is unlikely to deter central banks from structurally increasing their gold purchases, as these acquisitions are often made using dollar reserves. Additionally, the concurrent rise of both the dollar and gold prices during periods of uncertainty underscores their effectiveness as hedging tools within investment portfolios. Goldman Sachs has projected that the price of gold will reach $3,000 per ounce by the end of 2025.