Gold Prices Poised to Exceed $4,900 as Options Demand Surges
Gold prices may surge past Goldman Sachs's $4,900 year-end forecast as options demand has skyrocketed.
A combination of Western investor demand and central bank buying could push gold prices towards key option strike levels.
This would trigger dealer hedging, amplifying price moves both upwards and downwards, according to Goldman.
The surge in gold prices is attributed to receding expectations of a September Federal Reserve rate hike following the Fed's July policy hold and softer jobs and inflation data.