Goldman Sachs Urges Investors to Buy Gold Amid Rising Trade Uncertainty
Goldman Sachs recommends long gold positions as trade tensions escalate. Learn why gold prices are surging and how it protects against market risks.
Gold prices hit a record high on Friday, and Goldman Sachs is urging investors to buy gold as a safe bet amid growing trade uncertainty. The bank warns that new U.S. tariffs on Mexico and Canada could push gold prices even higher.
“With so much uncertainty around U.S. trade policies, gold is becoming a key asset for investors looking to protect their portfolios. We strongly recommend holding gold as a way to guard against risks,” Goldman Sachs analysts said in a recent report.
The bank highlighted two major risks driving gold’s rise: the threat of higher tariffs and concerns about U.S. debt.
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On Friday, gold futures (GC=F) climbed above $2,860 per ounce, marking their fifth straight week of gains. This surge is surprising because the Federal Reserve recently decided to keep interest rates steady, which usually makes gold less attractive. However, fears about global trade and economic instability are outweighing this trend.
President Donald Trump has announced plans to impose a 25% tariff on imports from Mexico, Canada, and China starting February 1. Experts warn this could lead to a trade war, hurting global economic growth and boosting demand for gold as a safe-haven asset.
“If tariffs increase, we expect more investors to turn to gold, which will push prices even higher,” Goldman Sachs analysts added.
So far this year, gold prices have risen about 6%, following a strong 27% jump in 2024. This growth is being driven by two key factors: foreign central banks buying more gold and increased investments in gold-backed exchange-traded funds (ETFs).
“We stand by our recommendation to invest in gold. It’s supported by long-term trends like central bank purchases and short-term factors like ETF demand,” the analysts said. Goldman Sachs predicts gold could reach $3,000 per ounce by mid-2026.
As trade tensions continue, gold’s role as a safe-haven asset is more important than ever. Investors are turning to gold to protect their money from market ups and downs, making it one of the best-performing assets in today’s uncertain economy.
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