Gold Price to Reach $5,400 by 2027 Despite Rising Interest Rates
The gold market may be far from over, according to Goldman Sachs' recent forecast of $5,400 per ounce by the end of 2027. Analyst Lina Thomas expects strong central bank buying to offset any slowdown due to higher interest rates.
Central banks have been accumulating gold at a steady rate, with global central banks purchasing an estimated 289 metric tonnes in the second quarter and another 23 tonnes in July, according to the World Gold Council (WGC). Emerging-market central banks have been particularly active, with China and Poland adding about 20 tonnes and eight tonnes, respectively.
Gold could also benefit from concerns surrounding government spending, rising debt levels, and de-dollarization by some countries. Greenlight Capital founder David Einhorn is bullish on gold, believing it will 'significantly outperform' the Nasdaq over the next three to five years due to loose U.S. fiscal policy and global de-dollarization.
Blue Jay Gold (TSXV: JAY) (OTCQB: JAYGF), a potential beneficiary of this trend, has reported results from its metallurgical test program on mineralization at the Becker-Cochran antimony occurrence in southern Yukon. The company produced a 67% antimony concentrate at a 94% recovery rate, with three North American processing groups converting the concentrate into finished antimony products.