Goldman Sachs expects higher gold prices - according to its new forecast, they will rise to $2700 an ounce by the end of this year, Investing.com reports. The previous estimate was $2300.

The precious metal has risen 20% since January despite concerns surrounding the Fed's rate cut plans and a stock market rally. The stable growth it has shown in this environment, along with other factors, has prompted the bank to raise its forecast.

The growth driver for gold continues to be expectations of the Fed's move to reduce the rate; in addition, it will be supported by the instability associated with the upcoming elections in the U.S., as well as the budget situation, according to the bank. The fact that the positive dynamics of the precious metal remained after the data on higher-than-expected inflation in March, confirms that its rally is not driven by the usual macroeconomic factors, noted in Goldman.

Meanwhile, UBS warns that amid high inflation, the Fed may decide to resume raising rates next year, which would be a negative factor for gold.