TREE NEWS reports: Goldman Sachs maintained its forecast of $4,900 an ounce for gold by the end of 2026, saying the net risk to that call is skewed to the upside while two-way volatility along the path will increase. The bank said the forecast assumes continued strong central-bank demand, and that renewed ETF inflows plus sustained elevated call-option positioning could mechanically amplify a rally through dealer hedging. It warned that a renewed rise in Fed rate-hike expectations could trigger dealer hedging unwinds and a sharper-than-usual correction.
Goldman Sachs Keeps $4,900 End-2026 Gold Forecast, Sees Upside Risk
AI take
The notable element is not the target but the mechanism Goldman flags: dealer hedging tied to elevated call-option positioning can turn ETF inflows into outsized moves in either direction, making gold's path more reflexively driven than fundamentals alone would suggest. That matters most for traders carrying leveraged or options-linked exposure, since the same structure that amplifies rallies can accelerate unwinds if rate-hike expectations resurface. Whether central-bank demand holds while positioning stays this crowded is the open question.
Generated by AI for reference only.
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