Western Capital Drives Volatility in Precious Metals Market
Goldman Sachs recently released a report stating that the price fluctuations in the precious metals market during January were primarily driven by Western capital flows rather than speculative activity. This pattern indicates that institutional investors still have a positive outlook on the long-term value of precious metals like gold.
Regarding gold price forecasts, Goldman Sachs believes the previously set target price of $5,400 per ounce by December 2026 carries significant upside risks. This suggests that under the current market conditions, gold prices could surpass expectations.
Silver Market Faces Liquidity Challenges
At the same time, the silver market has shown greater volatility. Goldman Sachs analysis attributes this to the tight liquidity conditions in the London market. Insufficient liquidity has amplified silver's price swings, making it more susceptible to short-term shocks.
In addition to the bullish options structure similar to gold, the ongoing liquidity issues have become a key factor contributing to extreme price movements in silver. This indicates that the stability of the silver market may continue to be challenged in the near term.
- Goldman Sachs expects gold prices may exceed $5,400 per ounce
- January precious metals volatility dominated by Western capital
- Tight liquidity in London intensifies silver price swings