Goldman Sachs: Western Fund Flows Drive January Precious Metals Performance, Gold Outlook Has Upside Risk

BlockBeats News, February 4th, Goldman Sachs stated that it continues to see significant upside risk to its December 2026 gold price forecast of $5400/oz. The bank noted that, from a timing perspective, most of the price action in January was driven by Western fund flows rather than speculative behavior, with silver experiencing a significantly larger correction. This is because the liquidity conditions in the London market remain tight, amplifying bidirectional price swings. In the silver market, in addition to volatility triggered by a similar call option structure as in gold, ongoing London liquidity constraints have added an extra factor to extreme price behavior. (FX678)