Goldman Sachs raises gold price target to $4,900 but warns of increased two-way volatility; hedging operations may amplify market movements

(1) Goldman Sachs reiterates its prediction of significant upside risk for gold prices, forecasting USD 4,900 per ounce by the end of 2026. It believes the further recovery of Western investor demand, combined with the ongoing robust gold purchases by central banks, could drive prices close to key strike levels, triggering hedging actions by traders and accelerating the rally. (2) Goldman Sachs also points out that the current gold uptrend faces greater bidirectional volatility risks, as prices quickly climb and become susceptible to technical and capital flow factors; the market is not in a single-sided, steady upward pattern. (3) Institutions warn that if gold prices correct, traders may swiftly unwind previously established hedges, which would add extra selling pressure and amplify downward price movements, creating a negative feedback loop. (4) In summary, the gold market is currently at a stage where strong fundamentals coexist with intensified structural capital competition. The medium- to long-term upward logic remains intact, but in the short term, price sensitivity to key technical levels and traders’ positions has significantly increased, making any breakout in either direction likely to trigger a chain reaction.