Gold Prices Near $4,000, Bull Trend Expected to Resume
Gold prices are near $4,000 ahead of the FOMC meeting and Goldman Sachs' Anthony Kim says that the bull trend in gold will resume. According to Kim, the current pause is not a failure of the bull market but rather an elongated pause caused by the nomination and confirmation of Jerome Powell as the new Fed chair, as well as the Iran conflict.
Kim mentioned that the market's reaction function to the upcoming August CPI data will be crucial in determining the direction of gold prices. He stated that if the market is trying to predict a certain Fed action, it may lead to uncertainty and volatility in gold prices.
Golds' price target for 2026 was previously set by Goldman Sachs Research at $4,900 per ounce. The analysts expect central banks to continue buying gold as they diversify their reserves and hedge against geopolitical and financial risks. They also highlighted that the use of gold derivatives for hedging has increased demand for gold and may lead to greater two-sided volatility in prices.