Lina Thomas

Still Bullish on Gold

Lina Thomas, Chris Hussey

Competing demand from central banks and private investors is driving a self-reinforcing rally in gold prices, while Goldman Sachs forecasts a 2026 target of $5,400 based on declining Federal Reserve rates and fiscal debasement fears. The silver market is experiencing extreme volatility due to a severe liquidity squeeze in London vaults, which Goldman Sachs expects to persist despite the metal's potential as a speculative vehicle. Although geopolitical tensions are fueling broader commodity stockpiling, the firm distinguishes gold's constrained supply as superior to the scalable nature of non-precious metals like copper, which limits their capacity for a sustained super cycle.