Goldman Sachs, one of the biggest investment banking companies in the world, said that the price of the precious metal gold will rise by 20% in order to reach $2300 by the end of 2022.
The asset has hit new record highs in recent weeks and specifically on the 31st of July with it being worth more than $2000 per ounce. The company believes that there is still a way to go for its future.
According to a recent report by Bloomberg, the bank believes that the price of gold will spike over the next year to the $2300 mark. This is mainly due to concerns over the standing of the US dollar in the current state of things. Many analysts at Goldman Sachs have previously said that a record level of debt accumulation from the government in the United States has had a knock-on effect to the asset. This, as well as real concerns around the lifespan of the US dollar as a reserve currency.
So where does bitcoin go into this? Many people have said over the past year that bitcoin could be a better hedge against inflation compared to the precious-metals. Since March this year, the digital asset has had a stronger and negative correlation with the dollar compared to gold which raises questions for the future of a reserve/alternative currency.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
