Gold price outlook: What lies ahead for the yellow metal? Here's what Goldman Sachs says on bull run prediction
Goldman Sachs' global head of metals trading, Tony Kim, believes gold's bull run is far from over despite recent weakness, describing it as an 'elongated pause.' He suggests building positions gradually, especially near the $4,000 floor, citing increased central bank gold purchases since the Russia-Ukraine war as the primary reason for optimism.
Why it matters
This analysis provides investors with insights into the future trajectory of gold prices, influencing investment decisions and potentially impacting global financial markets.
Gold’s record-setting rally may have lost momentum, but its bull run is far from over, noted Tony Kim, global head of metals trading at Goldman Sachs.Kim describes the recent weakness as an “elongated pause” rather than the end of the broader bull market. It has come under pressure as Treasury yields and the US dollar have climbed, and, at the same time, stronger-than-expected US jobs data on September 4 increased expectations for a Federal Reserve interest rate hike on 16 September.Currently, two developments have simultaneously complicated the outlook. First is uncertainty over Federal Reserve policy under new chair Kevin Warsh. Investors are trying to understand his approach to inflation and interest rates.
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