Gold prices soared to all-time highs near $4,400 per ounce, then plummeted over 6% in a day, sparking debate about the future. Despite dip buyers, gold finished down 3.5% for the week. Goldman Sachs remains bullish, citing factors like central bank buying and ETF inflows driving prices higher.

The U.S. economy faces uncertainty as the Federal Reserve balances low unemployment and rising inflation. Layoffs are increasing, with nearly 1 million reported in 2025, and inflation is climbing due to President Trump’s tariffs. The Fed’s focus remains on the weakening job market amid growing economic risks.

Treasury yields and the U.S. Dollar have trended lower, benefiting gold prices historically. Lower yields make gold more attractive, and a weaker Dollar attracts foreign buyers. Goldman Sachs remains bullish on gold, expecting prices to climb to $5,055 by the end of 2026 despite recent pullbacks.

Goldman Sachs’ optimism is based on factors like central bank buying, ETF inflows, and expected Fed rate cuts. With $33 billion flowing into gold ETFs in recent weeks, lower rates, economic uncertainty, and a weak Dollar indicate gold prices could test support levels near $4,000 before marching higher to $5,055 by the end of 2026.

Read more at Yahoo Finance: Goldman Sachs revisits gold price target for 2026