29 May 2025 | Gold | Oil

Goldman Sachs advises investing in gold and oil to hedge against economic instability

Goldman Sachs advises investing in gold and oil to hedge against economic instability

Analysts at Goldman Sachs advise adding gold and oil to long-term portfolios. The strategy is particularly relevant as concerns grow over the stability of the US economy. 

After a thorough study of historical data, experts concluded that when stocks and bonds fall, gold and oil tend to show positive returns. It makes them a reliable capital protection tool. 

Analysts note that investor confidence in long-term US securities is declining due to increasing government debt. Since it usually results in gold’s strengthening role as a safe haven, the bank expects the metal’s price to rise to $3,700 per ounce by year-end and to $4,000 by mid-2026. 

Oil is also important for portfolio diversification, especially given potential supply shocks after 2028. Although high spare capacity limits oil’s gains at the moment, energy prices could surge in the long term, driven by supply shortage, experts summarize.

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