Goldman Sachs Maintains Bullish Outlook on Gold Amidst Tariff Concerns
Gold futures continued their upward trajectory, with analysts at Goldman Sachs reiterating their positive stance on the precious metal. The rising uncertainty in US trade policy, particularly the potential implementation of tariffs on Mexico and Canada, has amplified the appeal of commodities as a diversification tool for investment portfolios.
Goldman analysts emphasized the particular value of long gold as a hedge against various tail risks. They identified tariff escalations and US debt concerns as key threats driving the upward trend in gold prices.
The firm anticipates further support for gold as tariff tensions escalate, bolstering the existing price support they anticipate. The commodity has witnessed a consistent rise in value, extending its gains for a fifth consecutive week.
Despite the Federal Reserve's decision to maintain interest rates, gold has continued to perform well. Typically, lower interest rates favor gold by encouraging increased asset purchases. However, strong demand from central banks and inflows into gold-backed ETFs have contributed to gold's year-to-date growth of approximately 6%.
Goldman analysts remain confident in their long gold recommendation, driven by structural factors such as central bank buying and cyclical factors like ETF purchases. They reaffirmed their price forecast of $3,000 per troy ounce by the second quarter of 2026.