Goldman Sachs sees more upside for gold prices

Goldman Sachs expects gold prices to continue rising, even to levels exceeding its own estimates, citing growing interest from private investors, despite prices rising by about 50% so far this year.

The bank's analysts explained in a note to clients that the sudden strong inflows into gold-backed exchange-traded funds exceeded their previous estimate, according to Bloomberg.

They added that the potential for individual investors to diversify their investments significantly into gold poses a significant risk to their forecast of $4,000 per ounce by the middle of next year and $4,300 by the end of the year.

The bank previously predicted that the yellow metal would approach $5,000 per ounce if just 1% of the private market for US Treasury securities flowed into gold.

Gold prices have risen by about 12% since August 29, hitting new record highs, making the precious metal one of the strongest performing commodities.