Gold is expected to continue its "silver shine"! Goldman Sachs bets that the rising gold will hit $4000.

Goldman Sachs Group, Inc. stated in a research report released on Monday that the increasing demand for gold by central banks globally has structurally raised the "gold to silver ratio." They expect the trading price of gold to continue to outperform another much cheaper precious metal silver, emphasizing that the recent strong buying of silver may not be sustainable. Therefore, Goldman Sachs Group, Inc.'s commodity analysts team does not believe that the highly focused attention on silver prices in recent times will catch up to the soaring gold prices. The latest market statistics show that the so-called "gold to silver ratio" (the number of ounces of silver needed to purchase one ounce of gold) is around 102, compared to about 84.7 a year ago. In terms of gold price trends, amidst tariff threats, safe-haven sentiment has returned to the market, with gold spot and futures prices rising nearly 3% during Monday's US trading session, nearly erasing the losses of the past week. On Tuesday, gold spot/futures prices continued to rise, with the gold spot price breaking $3360 per ounce, reaching the highest level in over a week. The main logic behind this is the new tariff threats led by US President Donald Trump stimulating market demand for safe-haven assets. Trump opened a new front in the trade war last Sunday, stating that foreign-made films entering the US would face a 100% tariff. On Monday, he announced plans to unveil drug-related tariff policies over the next two weeks. Goldman Sachs Group, Inc. stated in the research report, "With the overall capacity of CECEP Solar Energy in Asia beginning to slow significantly due to oversupply, the increasing risk of global economic recession due to a new round of tariff battles, and strong demand for gold purchases by central banks remaining strong through 2025, we expect the upward trend in gold prices to far surpass that of silver." As a precious metal, silver not only has value for investment and value preservation, but also has the most diverse industrial uses due to its extremely high electrical conductivity, thermal conductivity, ductility, and reflectivity. Especially in the solar industry, silver plays an indispensable role as a "collecting network" and is a key material for the efficiency and reliability of current silicon solar cells. However, oversupply in the solar industry continues to suppress demand for silver. Goldman Sachs Group, Inc.'s analyst team added that considering the high correlation of global fund flows within the precious metal category, if gold demand rises strongly again by 2025, silver prices could quickly rise as well, but it is difficult to match the sharp rise in gold prices. Statistics show that gold spot prices have risen by over 28% so far this year, even reaching a historical high of $3500.05 per ounce in April, benefiting from global political uncertainties, the incredibly strong demand for safe-haven investments brought about by Trump administration's aggressive tariff policies, and a substantial increase in funds flowing into gold ETFs. Silver is currently trading at $32.4 per ounce, up 12% so far this year. The "flagship of commodity bull markets" bullish on gold to surpass the $4000 super barrier With the bets on rate cuts, strong purchases by global central banks, and the strong demand for gold ETFs supporting the rise in gold prices, Wall Street investment firms are focusing on the next key milestone for gold prices - the $3500 super barrier. And Wall Street financial giants predict that as Trump's tariff policies continue to escalate, a new round of global trade wars will push on the trend of safe-haven investments, and the Trump administration's ongoing tariff measures and measures aimed at reversing globalization, and even threats to the independence of the Fed, continue to damage market confidence in the US dollar. After successfully breaking through $3500, the possibility of gold surpassing $4000 within a year is very high. Dubbed the "most accurate strategist on Wall Street," Bank of America Corp strategist Hartnett has repeatedly mentioned the "diversification" strategy, urging investors to allocate to international stock markets and go long on gold. Since the pandemic era, this strategist who has accurately predicted the timeline for the peak of the US stock market multiple times has been calling on investors to invest in international stock markets and go long on gold, a strategy that has proven effective.The dominant "BIG strategy" - that is, holding US bonds, international stocks, and gold (Bonds, International, Gold) in the long term until 2025, other than the US, can indeed bring investors a far higher overall investment return this year than the "Trump trade".Wall Street institutions are rapidly shifting towards defense, tending to allocate a portion of their positions to long-ignored assets such as gold, value stocks, and non-US international stocks. Max Kettner, the head of multi-asset strategies at HSBC, downgraded US stocks, investment-grade bonds, and junk bond ratings to "underweight" last week due to deteriorating US data and aggressive tariff policies, emphasizing that investors should further increase their holdings in gold to hedge against stagflation risks. The bullish sentiment towards ETF assets related to gold may continue to support the uptrend in gold prices in the second half of this year and even next year. Political risks for GEO Group Inc have not ended, and a new round of global trade wars caused by the Trump administration's tariff policies may intensify, keeping investors hopeful about long-term investments in gold. Statistical data shows that in the past two months (January and February), global major gold ETF assets have attracted over $12 billion in total, marking the largest scale since the beginning of 2020. Data shows that the VanEck Physical Gold ETF (RAAX.US) has significantly outperformed the S&P 500 index year-to-date, partly attributed to David Schassler, the head of multi-asset solutions at VanEck, who led the adjustment of gold allocation to maximum levels three years ago. Schassler even predicts that gold prices may reach $5,000 in the next 18-24 months.