Goldman Sachs: Strong Asia session gold buying for 8 straight days; 4,500/oz a tail risk ...Middle East

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Key Points:

Elevated Volumes:Trading volumes are currently running ~40% above the 10-session average at this time of day.

Goldman’s Upgraded Outlook:GS recently raised their 2025 year-end forecast to $3,700/oz, citing:

Continued central bank buying

Tail Scenario:If the Fed is forced to subordinate policy due to debt concerns or US reserve currency shifts, GS sees gold potentially spiking to $4,500/oz.

Goldman views the current rally as sustainable, with strong physical demand and investor inflows from Asia underpinning the move. Positioning remains far from euphoric, supporting their constructive outlook, while macro risks could trigger a super-spike scenario in the months ahead.

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This article was written by Adam Button at www.forexlive.com.

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