TREE NEWS reports: Goldman Sachs analysts, including Lina Thomas, report that surging demand for gold call options increases the risk of sharp two-way price movements in gold. They maintain their forecast of $4,900 per ounce by end-2026 but note significant upside risk and greater volatility.
Goldman Sachs: Surge in Gold Call Options Demand May Amplify Price Swings
The notable point is not the $4,900 target but the structural shift Goldman flags: options demand itself becoming a volatility source. That matters for any portfolio using gold as a hedge, since a market driven by positioning can overshoot in both directions and blunt gold's diversification role precisely when it is needed. Whether the call-option build-up keeps amplifying two-way swings, rather than the forecast level, is the open question to watch.
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