Growing economic uncertainty is pushing investors and central banks toward gold, with fears of a weakening U.S. dollar driving demand for the precious metal, according to Daan Struyven, Goldman Sachs’ co-head of global commodities research.
Speaking on CNBC’s Squawk Box, Struyven highlighted that concerns over economic stability and trade policies have led to a surge in gold purchases.
While cyclical commodities like oil are feeling the pressure, gold is benefiting from increased investor interest and aggressive accumulation by central banks.
Gold’s price could climb as high as $3,300 per ounce by the end of the year, with Goldman Sachs’ base case projecting a year-end target of $3,100.
Struyven noted that investor positioning remains relatively clean despite the rally, as ETF inflows have added 100 tons of demand in just a month.
Meanwhile, central banks continue to ramp up their gold holdings at an unprecedented pace, with purchases in January reaching levels seven times higher than the pre-2022 average.
This rush toward gold reflects growing concerns over the safety of U.S. dollar reserves and Treasury holdings, signaling a broader shift in how investors and institutions are safeguarding their assets.
Geopolitical conflict rattles markets, but history shows panic selling crypto in response is usually the wrong move.
Robert Kiyosaki, author of Rich Dad Poor Dad, has issued a bold prediction on silver, calling it the “best asymmetric buy” currently available.
Bitcoin-focused investment firm Strategy Inc. (formerly MicroStrategy) is facing mounting legal pressure as at least five law firms have filed class-action lawsuits over the company’s $6 billion in unrealized Bitcoin losses.
Fresh data on Personal Consumption Expenditures (PCE) — the Federal Reserve’s preferred inflation gauge — shows inflation ticked higher in May, potentially delaying the long-awaited Fed rate cut into September or later.