Gold Takes a Break, Goldman Sachs Targets $5,400
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer tone made the market a little more willing to take risks, thus easing the pressure to buy gold as a safe haven.
However, the big picture hasn't changed: gold remains in high territory because the world remains filled with uncertainty. Trade wars could resurface at any time, geopolitical tensions haven't completely subsided, and investors are still seeking assets considered the "safest" during market turmoil.
Another factor keeping the gold rally alive is the policy drama in the US. When concerns arise about monetary policy stability and central bank independence, some market participants typically seek refuge in gold—as it is considered more resilient to political shocks and changes in interest rates.
What makes this even more interesting: amidst the short-term correction, Goldman Sachs actually raised its year-end gold price target to $5,400 per ounce, from its previous target of $4,900. Essentially, they see demand remaining strong—especially from large investors and central bank purchases.
Next gold price prediction (near term): Gold is likely to enter a consolidation phase after a sharp rally. A realistic scenario is for the price to move in the $4,750–$4,900 range. If it breaks through and holds above $4,900, the market will typically begin targeting $5,000 as the next psychological level.
However, if geopolitical tensions truly ease and the dollar strengthens more aggressively, gold could correct further to the $4,650–$4,720 area before finding new buying interest. So, the direction is still largely bullish, but the path is likely to be volatile and headline-sensitive. (asd)
Source: Newsmaker.id
