Mubasher: Goldman Sachs sees the yellow metal’s breaking the $1,500-per-ounce barrier for the first time in more than six years, as merely the beginning of an extended rally.

As investors fled to safety, gold prices, already trading at six-year peaks, are predicted to hit $1,600 per ounce, during the next six months, Goldman analysts were cited by Bloomberg.

With a gloomy global economic outlook and a heightened trade tensions between the US and China, gold’s safe-haven appeal as a hedge against financial turbulence grew.

“If growth worries persist, possibly due to a trade war escalation, gold could go even higher, driven by a larger ETF [exchange-traded fund] gold allocation from portfolio managers who still continue to under-own gold,” a note by the US bank’s analysts was quoted by the news outlet.

Precious metal holdings in ETFs hit their highest since April 2013 with a financial market rout that slashed more than $700 billion from the value fo US equities on Monday.

“Gold ETFs have recently built momentum almost as strong as in 2016, and we believe that can be maintained in the short-term,” the Goldman note said.

The lender raised its outlook for ETF demand this year to 6000 metric tonnes, up from 300 tonnes, while it boosted the six-month price projection after the safe-haven metal soared beyond the prior target of $1,475 per ounce.

By 10:47 am, spot gold declined by 0.33% to $1,496.25 per ounce, while US gold futures dropped by 0.76% to $1,508.10 per ounce.