Gold prices reached a seven-year high last week, passing the previous high set back in mid-April. That high was followed by a trading-range consolidation pattern that lasted until last week (see the following chart). Gold prices now appear to be preparing to break out of this consolidation and move to up to challenge other previous highs, including their all-time high of around $1,900 per ounce. According to MarketWatch, analysts from Goldman Sachs have raised their forecasts for gold: “Gold prices are likely to reach $2,000 an ounce in 12 months on the back of low real interest rates and concerns over currency debasement, even as developed markets emerge from COVID-19 lockdowns, lifting risk-on sentiment, according to a note Friday from Goldman Sachs. “The investment bank raised its 12-month forecast on gold to $2,000 an ounce, from $1,800. It also lifted its three-month view to $1,800 from $1,600 and its six-month forecast to $1,900 from $1,650. “‘Gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates,’ wrote analysts at Goldman Sachs.” Rick Andrews is president of Avant Capital Management.