2026-01-12 08:22:47

Gold is stirring again. Today, international gold prices surged by 2%, with New York futures reaching $4612 intraday, setting a new historical record once more. This rise is not accidental; there are actually two forces driving it.

On one side, geopolitical tensions are flaring up again, and safe-haven funds are becoming more active. Whenever international situations become unstable, investors tend to flock to gold — this is an old rule. On the other side, major foreign investment banks like Goldman Sachs have just issued forecasts, believing that the Federal Reserve will cut interest rates by 25 basis points in June and September this year. Once this news broke, it was a direct positive for gold — rate cuts mean the appeal of holding cash decreases, and the relative value of gold as a non-yielding asset increases.

According to general institutional forecasts, international gold prices are expected to challenge the $5000 mark this year. Before reaching that target, logically, gold should remain strong. Whether from the perspective of safe-haven demand or monetary policy, current conditions still support gold prices to continue rising.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

9 Likes

Reward
9
8
Repost
Share

Comment

0/400

WhaleWatcher

· 6h ago

Gold surged as the expectation of interest rate cuts emerged; this move is indeed significant.

View OriginalReply0

SpeakWithHatOn

· 16h ago

The expectation of interest rate cuts is here, and gold is about to take off. This logic indeed makes sense. When the Federal Reserve moves, the whole world follows suit. It's the old routine. $5000? Forget it, let's see if $4800 can hold first. Why does it feel like every time there's geopolitical risk, it's a golden opportunity for price increases? Now entering the market might not be the last step, feeling a bit anxious. Goldman Sachs is bullish on gold, but I still find it a bit hard to see clearly. Can this wave really break $5000, or is it just another trap to cut the leeks? Not sure. Safe-haven funds flocking into gold—what does that mean? Everyone's panicking. Interest rate cuts ≈ gold rising. This logic doesn't seem that simple either. Gold prices hit new highs again, and it feels like the top isn't far away.

View OriginalReply0

Layer2Observer

· 23h ago

Let's take a look at the data. Jumping from 4612 directly to 5000? Logically, there is indeed support, but the expectation of rate cuts by Goldman Sachs needs to be clarified—what are their model assumptions? Further validation is needed. I agree that safe-haven demand pushes gold prices, but putting all the chips on geopolitical situation and rate cuts as the two variables, it still feels like something is missing.

View OriginalReply0

OfflineNewbie

· 01-12 08:52

As soon as the rate cut expectation emerged, gold took off. I'm too familiar with this routine. $5000? Come on, it's just institutions setting traps for retail investors again. Now entering is just being a bagholder, waiting to be trapped, haha. Geopolitical situations happen every day, but gold's rise and fall still depend on the Fed's face.

View OriginalReply0

DegenDreamer

· 01-12 08:52

Gold has surged to 4612. Goldman Sachs says it can go up to 5000? Alright, I bet it can break new highs, anyway, the safe-haven buying won't stop.

View OriginalReply0

TrustMeBro

· 01-12 08:52

Expectations of rate cuts + geopolitical risks, gold is really gaining confidence this time Can $5000 really be broken? Feels like a rebound is imminent Gold is bullish according to Goldman Sachs. Is this time reliable or just another trap for retail investors? Can I still jump in now, or should I wait for a pullback to buy? Safe-haven funds are flooding in wildly, the old rules still work

View OriginalReply0

FallingLeaf

· 01-12 08:48

Gold reaching 5000? Come on, it's even hard to say whether this wave can break through 4700.

View OriginalReply0

CommunitySlacker

· 01-12 08:48

Wait, Goldman Sachs said interest rate cuts? That doesn't seem right, they were just talking about rate hikes before. Gold keeps hitting new highs every day, why haven't I made any money yet... $5000? Dream on, it's already at 4612 now, feels like a crash is coming. Interest rate cuts, safe-haven, geopolitics... I'm tired of these buzzwords, just want to know when I can buy the dip. Gold is rising so aggressively, it feels like someone is harvesting the leeks.

View OriginalReply0