Goldman Sachs Maintains Bullish Outlook on Gold Amid Trade War Fears
As gold futures reach record highs, Goldman Sachs analysts reiterate their positive stance on the precious metal due to potential U.S. tariffs against Mexico and Canada.
"Elevated policy uncertainty reinforces the diversification role of commodities in investment portfolios, particularly gold, as a hedge against tail risks," analysts note.
Tariff escalations and U.S. debt concerns are seen as key drivers for higher gold prices. Bullion futures surpassed $2,860 per ounce, marking its fifth consecutive week of gains.
Gold's rise comes despite the Federal Reserve's decision to maintain interest rates, typically seen as a headwind for the metal. Strong demand from central banks and inflows into physically backed ETFs continue to buoy gold prices.
"We maintain our view that long gold is our top conviction trade in commodities, driven by structural (central bank buying) and cyclical (ETF buying) factors," analysts state, reiterating a $3,000 per troy ounce price target for Q2 2026.