Goldman Sachs issued a research report indicating that geopolitical tensions last week and the sharp rise in Japanese government bond yields before the weekend could drive a surge in safe-haven demand, pushing gold prices above $5,000 per ounce. These concerns are still evolving, and policy uncertainty in Japan may persist until the February 8 election, maintaining elevated safe-haven demand.
For technical investors, Goldman Sachs views the current gold price level as an "uncertain" entry point. A de-escalation of tensions may cause a temporary pullback in gold prices, but further escalation of risks could support a consolidation or renewed increase in prices. In the long term, gold prices are expected to maintain their upward trend due to strong buying from emerging market central banks and investor demand spurred by the Federal Reserve easing its policies.
Goldman Sachs’ baseline forecast still anticipates gold prices reaching $5,400 per ounce by December this year. With silver prices up 51% year-to-date, Goldman Sachs expects extreme price volatility in silver—both upward and downward—to continue, advising investors with low tolerance for volatility to exercise caution.
