Gold better hedge than oil during geopolitical tensions, says Goldman

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Gold better hedge than oil during geopolitical tensions, says Goldman
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Goldman Sachs on Monday maintained its three-, six- and 12-month forecast for go...

FILE PHOTO: A one kilo gold bar is displayed in a shop in Dubai's gold souk, April 11, 2006. REUTERS/Tamara Abdul Hadi/File Photo

“The range of potential scenarios is very large; spanning oil supply shocks or even oil demand destruction — which would be negative to oil prices,” the Wall Street bank said in a note, adding under most outcomes gold is likely to rally beyond the current levels. Concerns about a further escalation in the Middle East tension sent gold prices to their highest in almost seven years, with Trump threatening to strike back if Tehran were to retaliate.

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