FXStreet reports that Goldman Sachs commodity analysts Jeffrey Currie and Mikhail Sprogis, said that there is still a “strong strategic case for gold”.

“In our view, the structural bull market for gold is not over and will resume next year as inflation expectations move higher, the U.S. dollar weakens and E.M. retail demand continues to recover.”

“Near term, however, it may be difficult for gold to generate a meaningful momentum in either a higher or lower direction.”

“Under our economist forecast (assuming our bullish oil forecast) short-term U.S. real rates will average -2.1% over the next five years. Five-year tips yield is currently -1.2%, which implies material downside potential.”

“We believe the bulk of gold purchases which happened this year were made by investors who were more concerned about the real purchasing power of the dollar vs. losses in their equity portfolios,”