Gold Price Forecast Goldman Sachs has updated its forecast for gold prices, anticipating that the precious metal will hit US$3,000 per ounce by the end of 2025, a prediction that slightly diverges from futures market expectations. Image: Goldman Sachs
U.S. Federal Debt Growth and Gold Price While the increase in U.S. federal debt has traditionally correlated with higher gold prices, multiple other factors significantly influence gold’s market value. Image: Deutsche Bank
Price of Oil Forecast In contrast to futures market’s expectations, Goldman Sachs forecasts a positive outlook for oil prices over the next 3 months. Image: Goldman Sachs Global Investment Research
Equity – Leveraged Funds and Asset Managers Net Future Positions Leveraged funds and asset managers remain very net long S&P 500 futures, suggesting their confidence in the upward trajectory and potential profitability of the U.S. stock market. Image: Goldman Sachs Global Investment Research
Fed Funds Target Rate Goldman Sachs predicts that by the end of 2024, the federal funds rate will reach 5.1%, which differs significantly from the expectations of the futures market.. Image: Goldman Sachs Global Investment Research
Commodities – Commodity Backwardation Rate Current commodity spot prices are higher than futures prices due to tight supply and strong demand. Image: J.P. Morgan Asset Management
Equities – MSCI EM Net $ Positions and U.S. Equity Net $ Positions Futures positioning in U.S. equities remain high. Image: Goldman Sachs Global Investment Research
Expected Fed Funds Rate, Negative Interest Rates and 2-Year Treasury Yield Negative U.S. yields are in sight, as Fed funds futures for June 2021 imply an expected negative rate of -0.03%. Image: Fidelity Investments
Number of Times S&P 500 Fell 7% and Hit a Circuit Breaker U.S. futures and U.S. stocks have hit multiple level-one circuit breakers this year. Image: Deutsche Bank Global Research
Expected Fed Funds Rate Fed funds futures for January 2021 imply an expected rate of 1.18%. Click the Image to Enlarge
Number of Fed Rate Hikes/Cuts Expected Over Next 12 Months Fed funds futures imply two further rate cuts over the next 12 months. Image: Credit Suisse Research