Gold set new all-time highs last week, finishing at $1,985.90 per ounce (see the following chart). The precious metal is now in position to reach $2,000 per ounce.

Gold’s rise has come as the U.S. dollar has declined, falling over 5% in the last three months. The dollar has lost its interest-rate advantage over other currencies because the Federal Reserve has been more aggressive than other central banks in driving down rates. This trend has caused analysts to raise their future projections for gold even higher.

Business Insider reports, “Goldman Sachs expects gold to jump almost 20% from its already record level to reach $2,300 in the next 12 months on rising concerns over the US dollar’s global standing as a reserve currency. …

“‘With more downside expected in US real interest rates, we are once again reiterating our long gold recommendation from March and are raising our 12-month gold price forecast to $2300/toz and $30/toz respectively from $2000/toz and $22/toz,’ analysts from the bank said.

“‘Combined with a record level of debt accumulation by the US government, real concerns around the longevity of the US dollar as a reserve currency have started to emerge.’”

Rick Andrews is president of Avant Capital Management.