Gold paused not peaked, record run could be ahead: Goldman Sachs
Goldman Sachs analyst Tony Kim suggests that the recent stall in gold prices is a temporary pause rather than the end of a bull market. He cites central bank buying and long-term economic uncertainty as factors that could drive prices to new records.
Why it matters
Gold is a primary hedge against inflation and geopolitical instability, making its price trajectory a key indicator for global investors.
Gold’s rally has stalled, but it's not the end of the bull run, according to Tony Kim, global head of metals trading at Goldman Sachs. Uncertainty over Federal Reserve policy and the disruption caused by the US-Iran conflict have temporarily weakened several sources of demand. The longer-term picture, however, remains supportive because central banks are buying more gold than they did before the Russia-Ukraine war. According to Kim, gold could make new records once the current market uncertainty clears, with the $4,000-an-ounce area looking attractive for investors willing to build positions gradually.The rally is paused, not finishedGold’s record-setting run has lost momentum after its January peak. Kim describes what followed as an “elongated pause” rather than a reversal of the bull market. Two developments have complicated the outlook at the same time. The first is uncertainty over Federal Reserve policy under new chair Kevin Warsh.
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