Goldman Sachs raises 12-month gold price forecast to $2,000

Analysts at Goldman Sachs have raised their 12-month price forecast to $2,000 per ounce from the previous estimate of $1,800. 

The investment bank is of the opinion that a combination of above-2% US inflation and muted policy response is needed to lift the yellow metal above $2,000. The Federal Reserve is targetting 2% inflation and has pledged to keep rates near record lows until the goal is achieved. 

Goldman has also raised the three-month and six-month price forecasts to $1,800 and $1,900, respectively, from the previous projection of $$1,600 and $1,650.

Gold is currently trading at $1,726, representing a 13% gain on a year-to-date basis.