Gold Prices Soar to Record Highs, But Goldman Sachs Predicts Significant Fall

• Gold prices have reached an all-time high, with 24-carat gold surpassing ₹1.60 lakh per 10 grams, driven by global financial market uncertainties, rupee depreciation, and geopolitical tensions.
• Gold and silver-backed ETFs have seen a significant resurgence, rising up to 17% after a previous fall, indicating strong investor interest in safe-haven assets.
• Goldman Sachs has raised its gold price target to $5,400 per ounce by the end of 2026 (approximately ₹1,75,160 per 10 grams), citing massive structural changes in gold demand from private investors and central banks.
• The firm attributes the rising demand to investors using gold as a hedge against global policy uncertainty and developing countries diversifying their reserves.
• Despite the current surge, Goldman Sachs predicts a significant fall in gold prices if global monetary policy uncertainty decreases, leading to investor profit-taking.

Why It Matters: Gold prices hit record highs due to global uncertainty, but Goldman Sachs forecasts a significant drop if stability returns.