The demand for gold as a safe-haven asset has risen since the start of the year due to bearish market sentiment and surging market volatility. Given current geopolitical conflicts and surging inflation, U.S. investment bank Goldman Sachs has pushed up its gold price projections. The gold price climbed to $2020.98/oz overnight, registering the highest level since the middle of 2020. Due to the rising geopolitical instability, Goldman Sachs is hinting at increased demand for gold from consumers, investors, and central banks.
The bullish sentiment surrounding the industry is evident in iShares Gold Trust ETF’s (IAU) 10.5% gains over the past year. Gold mining stocks can potentially offer increased stability. Gold mining companies are primarily benefiting from the rising gold prices and have strong growth prospects, thus making them attractive investments now.
