$3,650! As gold prices reach new highs, Goldman Sachs: Market sentiment bullish on gold is unprecedented

So strong, gold has reached a new high! Goldman Sachs exclaimed: The bullish sentiment for gold is unprecedented.

Last week, gold prices broke through $3,500 per ounce, setting a new historical high. This week, the momentum for gold has not stopped, breaking above $3,600, once again setting a historical record in such a short period of time. Spot gold has been rising almost every day in the past two weeks of trading.

Currently, spot gold is at $3,653 per ounce.

According to a recent report released by Goldman Sachs, gold has become the most favored bullish trade among investors this month, even surpassing the popularity of developed market stocks. This survey, which started five years ago, shows that the current bullish belief in gold has reached "the strongest level ever."

Data shows that the ratio of investors optimistic about rising gold prices to those bearish is nearly 8 to 1, highlighting the overwhelming optimism in the market.

The report reveals a more noteworthy phenomenon: both the bullish and bearish camps in the market view going long on gold as the preferred trade.

The report analyzes several key factors driving this trend. These include the widespread expectation in the market for the Federal Reserve to soon begin a rate-cutting cycle, ongoing concerns about the independence of the Federal Reserve, and strong physical demand from central banks and potential private investors.

Against this backdrop, Goldman Sachs reaffirmed its bullish stance on gold. Samantha Dart, Co-Head of Global Commodities Research at the bank, clearly stated: “Gold remains our strongest bullish recommendation in the commodities space.”

Goldman Sachs warns: If the Federal Reserve's credibility is damaged, gold could soar to nearly $5,000

Wallstreetcn reported that Goldman Sachs warned in another report that if the credibility of the Federal Reserve is damaged, investors only need to shift a small portion of their U.S. Treasury holdings to gold for the price of gold to potentially soar to an astonishing level of nearly $5,000 per ounce.

The analyst team stated in the latest report that in the scenario where the independence of the Federal Reserve is compromised, the market will face multiple shocks including rising inflation, declines in both stocks and bonds, and a weakening of the dollar's status as a reserve currency. In contrast, gold, as a value storage tool that does not rely on institutional trust, will become a safe haven for investors.

Goldman Sachs presented three scenarios for gold prices in the report: the baseline forecast is to rise to $4,000 by mid-2026, the tail risk scenario reaches $4,500, and in an extreme case, if only 1% of private holdings of U.S. Treasury funds flow into the gold market, the price of gold will approach the $5,000 mark Gold has become one of the strongest performing major commodities this year, with an increase of over 30% and reaching a historic high earlier this week. Factors such as central bank purchases, expectations of interest rate cuts by the Federal Reserve, and Trump's increased control over the Federal Reserve have collectively driven this rally