Goldman Sachs Reaffirms ‘Long Gold’ Call Amid Global Uncertainty

Goldman Sachs Doubles Down on Gold as Trade War Fears Loom

Editorial Team (ET)May 8, 2025

Gold is back in the spotlight as Goldman Sachs doubles down on its bullish stance, urging investors to go "long gold." The investment giant points to mounting US tariff uncertainty as a key driver of the precious metal’s ongoing rally.

Gold futures climbed above $2,860 per ounce on Friday, marking their fifth consecutive week of gains. The rally continues despite the Federal Reserve holding interest rates steady—an event that usually dampens gold’s appeal. But in an era of geopolitical uncertainty and escalating trade tensions, investors are turning to gold as a safe haven.

Tariff Tensions Drive Gold’s Momentum

With President Donald Trump preparing to impose a 25% tariff on imports from Mexico and Canada by February 1, markets are bracing for potential economic disruption. A trade war looms, and investors are hedging their risks by pouring into commodities, particularly gold.

Goldman Sachs analysts argue that "elevated US policy uncertainty reinforces the diversifying role of commodities in investment portfolios." The firm views gold as a critical hedge against major tail risks, including:

The potential escalation of trade tariffs
Growing concerns over US debt levels
Increased demand from central banks and ETFs

$3,000 Gold? Goldman Sees More Upside

Goldman Sachs remains unwavering in its long-term price target of $3,000 per ounce by Q2 2026. The bank cites strong demand from foreign central banks and institutional investors buying gold ETFs as primary drivers of this bullish forecast.

Despite the Federal Reserve keeping interest rates unchanged—typically a headwind for gold—the demand remains robust. The yellow metal has already climbed 6% year-to-date, following a massive 27% gain in 2024.

Gold as a Safe Haven in Uncertain Times

Historically, gold has been the go-to asset in times of economic uncertainty, acting as a hedge against inflation, geopolitical turmoil, and financial instability. With tariffs, debt concerns, and global uncertainty rising, investors are rushing to gold not just as a trade, but as a long-term store of value.

As Goldman Sachs puts it: "Long gold remains our highest conviction trading recommendation across commodities."

With prices continuing their upward momentum and a potential $3,000 price target on the horizon, the case for gold as a must-have asset has never been stronger.

Goldman Sachs

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