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Analysts at Goldman Sachs have raised their 12-month price target for gold to $2,300 per ounce from the previous forecast of $2,000.

The yellow metal rose to a fresh record high of $1,981 per ounce on Tuesday, having surpassed the previous lifetime high of $1,921 on Monday. At press time, gold is up 29% on a year-to-date basis. 

Federal Reserve has pumped massive amounts of liquidity into the US economy over the past four months to counter the coronavirus-induced slowdown. That has already pushed the real or inflation-adjusted yield on the US 10-year Treasury note to a record low of -0.90%. 

Goldman Sachs expects the real yield to fall further, boosting demand for the yellow metal. “Today the risk is from the debasement of fiat currencies that sows the risk for inflation, and gold is the best hedge against debasement,” the Goldman strategists said.