Goldman Sachs Says Go "Long Gold" Amid Tariff Uncertainty

As gold futures reached new record highs of late, Goldman Sachs analysts reiterated their bullish outlook on the precious metal, citing the potential for U.S. tariffs against Mexico and Canada, Yahoo Finance's Ines Ferré and Hamza Shaban reported.

Goldman Sachs pointed to tariff escalations and concerns over U.S. debt as major factors likely to drive gold prices higher.

“Elevated U.S. policy uncertainty reinforces the diversifying role of commodities in investment portfolios. In particular, we continue to see value in going long on gold … as a hedge against several tail risks,” the analysts wrote.

The firm pointed to tariff escalations and concerns over U.S. debt as major factors likely to drive gold prices higher.

The rise in gold prices comes despite the Federal Reserve’s decision to hold interest rates steady—a move that typically dampens demand for the metal, as lower rates tend to make gold more attractive to investors.