Highly respected Investment firm Goldman Sachs is forecasting gold will rise to $1,600 an ounce in 2020 as political and economic worries trigger increased buying of the precious metal. 

Goldman anticipates next year will feature continued trade tensions between the United States and China, concerns the U.S. economy is slowing, and a weakening of the U.S. dollar, all of which would be supportive of gold. Add the unpredictability of the 2020 presidential election, and Goldman Sachs analyst Mikhail Sprogis maintains the precious metal will look increasingly attractive. “This uncertainty,” writes Sprogis, could trigger a rush to the precious metal, “as high net worth individuals may want to store gold outside the financial system.”

The analyst says a savings surplus has begun to develop that is supporting gold prices. His bullish argument also points to the fact that gold’s performance is not correlated with the stock market, which could be vulnerable to a pull back.

Meanwhile, European and Asian central banks should continue adding gold reserves in 2020 as they diversify away from U.S. dollar assets. “When combined with 750 tonnes of central bank gold purchases related to de-dollarization and defensive portfolio rotations, the savings glut means we maintain our bullish gold stance in 2020 with a target of $1,600/oz,” Sprogis said.