Goldman Sachs Reinforces $2000/oz Level If China Recovers From Second Wave

The investment bank Goldman Sachs sees gold to immensely benefit in a case if China recovers from the second wave of coronavirus infection strongly in comparison to the US. China is the biggest retail consumer of gold and is expected to hit billion prices of $2000 per ounce.

Also, the Wall Street sees good prospects for other metal including the likes of silver, copper, steel as well as gold and recommends on having long positions which are "both less exposed to areas with new outbreaks - Asia and Europe versus the Americas - and less exposed in the event of an outbreak."

In the international market, on safe haven buying, gold has already jumped 18% so far this year and it scaled to levels beyond $1800 per ounce, its highest price since September 2011.

Furthermore, while it may see some correction going ahead towards the end of 2020 to levels of $1740 per ounce, going forward in the next year it is seen to scale to prices of $1988 per ounce, on weaker dollar as well as looming inflation going further ahead.

Outlook for other commodities also remains positive too

"Silver too has a "near perfect environment" to finally perform," the bank said in a note dated July 9, based on drivers including a Chinese-led recovery in industrial activity, safe-haven buying and lower supply due to COVID-19-related mining disruptions in the Americas.

Also, for crude the investment bank wants to maintain a long position and maintaining short position in US crude.

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