Gold has now started to gain significant momentum. The metal is defying all odds to become the best safe-haven asset for investors in recent times. Gold price is now sitting at $3500 and has already started to show its ascent towards $3600, as investors continue to purchase the metal at a record pace. As investors await a final decision of the Federal Reserve on rate cuts, gold continues to score maximum attention, as the US dollar plunges on the possibility of a rate cut to be announced sooner this month.
Also Read: Gold and Silver Demand Goes Parabolic as Investors Seek Safety
Goldman Sachs’ New Call on Gold
In the middle of the current economic development, Goldman Sachs, the leading financial giant, has shared how gold is poised to hit new highs. Per the firm, gold is on a path to hit $4000, as the price of the asset continues to soar, as investors continue to stockpile gold at a record pace.
“Gold remains our highest-conviction long recommendation,” Goldman Sachs said in a note regarding gold recently.
Goldman Sachs firmly predicts two price thresholds for gold to hit soon. Firstly, the bank shared how gold may hit $3700 by the end of 2025. GS later shared another forcast of gold hiiting the $4K mark by the middle of 2026. The central bank’s gold buying spree could play an elemental role in shaping gold’s price in the future.
Gold Can Hit $5000 In This Special Case Scenario
The banks shared another striking analysis, a gold price forecast, claiming that its price could soon hit the $5000 price level as well. Explaining the reasoning behind the forecast, Goldman Sachs stated that if the independence of the Federal Reserve is sabotaged in any way, it could impact the price of gold in the future.
“A scenario where Fed independence is damaged would likely lead to higher inflation. Lower stock and long-dated bond prices, and an erosion of the dollar’s reserve-currency status. In contrast, gold is a store of value. That doesn’t rely on institutional trust.” Analysts, including Samantha Dart, said in a note.
The firm shared how a 1% investor pivot from the US treasury to gold is enough for the metal to score a $5000 price spot.
“We estimate that if 1% of the privately owned US Treasury market were to flow into gold. The gold price would rise to nearly $5,000 an ounce, assuming everything else remains constant,” the analysts said. “As a result, gold remains our highest-conviction long recommendation in the commodities space.”
Also Read: Gold Price Hits $3,500, Silver Tops $40: Are Bigger Gains Ahead?