Goldman Sachs' Predictions on Gold and the Asian Economy

Goldman Sachs forecasts that gold will experience a significant rise in 2025, driven by central bank purchases and U.S. interest rate cuts. The bank noted that during this process, gold is expected to be the commodity with the highest value increase, further implying that the appreciation could continue due to policies from Donald Trump’s presidency. In their research notes, Daan Struyven and other analysts emphasized the need to invest in gold, reiterating a target of $3,000 per ounce by December 2025. The structural increase in gold's value is anticipated to be driven by central bank demands, while periodic support will come from the Fed's interest rate cuts and inflows into equity funds. Goldman Sachs has called on investors to increase their gold positions during this period, highlighting gold's importance as a safe-haven asset once again.

Will the dollar continue to appreciate against Asian currencies?
Goldman Sachs' Economic Research Unit predicts that the U.S. dollar will continue to gain value against Asian currencies in 2025. The report prepared by experts indicates that the dollar is set to experience the "sharpest" appreciation against Asian currencies due to tariff risks and the continuation of U.S. economic policies. It also states that positive interest rate differentials between the dollar and low-yielding Asian markets will contribute to this trend. The factors outlined in the report suggest that the U.S. dollar will remain strong against regional currencies, which could have significant impacts on Asian investors and economies. Experts advise investors to be cautious of potential fluctuations in the foreign exchange markets.

Cautious outlook from Morgan Stanley and Goldman Sachs on Chinese markets
Deflationary pressures in the Chinese economy and geopolitical tensions have led leading Wall Street firms to adopt a more cautious stance towards Chinese markets. Morgan Stanley strategists have decided to slightly reduce their weighting in Chinese stocks, while Goldman Sachs Group Inc. has lowered its target for the MSCI China index. The increasing uncertainties in Chinese markets have prompted these two financial giants to take a more careful approach. This cautious stance is seen as a reflection of the structural challenges facing the Chinese economy and the tensions in international relations. These steps indicate rising risks related to the Chinese market for investors and are developments closely monitored by global markets.