With gold prices crossing the $1,500-mark on Wednesday, analysts across the globe are now bullish on the metal and predict that prices will climb even higher.

Goldman Sachs has predicted the metal will rally to $1,600/ounce in the next six months. Fears over the US-China trade war and a dimming global economic outlook would drive this, it adds. Portfolio managers, who under-own gold-ETFs, may now increase their allocation to gold and fuel the rally further.

Analysts from UBS Group AG and Citigroup Inc. are also bullish on the yellow metal.

Citibank has given a target of $1,525/oz over the next three months. This, the bank adds, will require the Fed to cut rates by at least 25 basis points in September.

The bullish of the lot is Bank of America Merrill Lynch, which last week said the metal could climb toward $2,000 in the next two years. It indicated that the dovish tilt by central banks across the globe and increase of negative yielding assets, would drive gold prices higher and sustain the metal’s rally.

Bond yields sink

Central banks around the world are cutting rates. After the Federal Reserve’s rate cut last week, the surprise drop in interest rate by the Reserve Bank of New Zealand and Bank of Thailand and the 35 basis points cut by RBI on Wednesday, has rattled investors. Bond yields across the globe plunged on Wednesday. The yield of 10-year US Treasury note nose-dived to 1.59 per cent. This is down more than 40 basis points in the last one week alone. The yield on the  30-year Treasury bond  slipped to 2.12 per cent, near its all-time low reached in 2016.

The yield on the German 10-year bund too hit a new all-time low. The UK 10-year and 30-year yields both hit record lows at 0.43 per cent and 1.078 per cent, respectively.

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