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#Gold

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Goldman Sachs Research forecasts gold prices will continue to rise, reaching $3,100 per troy ounce by the end of 2025, driven by increased central bank demand and gold ETF purchases. Speculative trading may counterbalance this trend, but persistent policy uncertainty could push prices even higher.

US stocks have underperformed global peers in early 2025, breaking a long-standing trend. Chinese and European equities have gained 14% and 8%, respectively, while US stocks lag. Market conditions are shifting, favoring diversification and stock picking over concentration in US tech stocks.

Jared Cohen, President of Global Affairs at Goldman Sachs, highlights the vulnerability of AI infrastructure due to its reliance on undersea data cables, which geopolitical tensions could threaten.

The S&P 500 is presenting strong opportunities for stock pickers, with individual stock performance increasingly driven by company fundamentals rather than macroeconomic trends. This environment is expected to persist due to AI-driven differentiation and policy uncertainty.

A briefings brainteaser asks which sector performed best during the 2018-2019 US trade conflict, with multiple choices provided.

Goldman Sachs analysts continue to monitor global market trends, including AI trade shifts and European economic developments.
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Here’s a summary of today’s key insights from Goldman Sachs Briefings:

Goldman Sachs CEO David Solomon is optimistic about the business environment and expects capital markets activity to return to 10-year averages in 2025. He attributes this to regulatory changes and a more collaborative investment landscape.

China's AI development is expected to boost AI adoption globally by lowering costs and increasing accessibility. Some Chinese AI models are reportedly cheaper to build, prompting US AI-related stocks to drop by 10% earlier this week.

Investor sentiment is shifting in 2025. Gold is increasingly favored, with 32% of surveyed investors calling it the best investment choice, up from 5% last year. India remains the top emerging market investment destination due to its manufacturing expansion and 6.5% expected economic growth through 2030. The "S&P 493" (excluding the Magnificent 7) is expected to outperform the broader S&P 500.

Goldman Sachs Asset Management sees India’s private equity and capital markets growing but warns of high valuations. Private credit demand is expected to rise due to M&A financing needs.

US stocks remain attractive, with Goldman Sachs' Investment Strategy Group (ISG) maintaining an overweight position. They expect an 8% return for the S&P 500 in 2025 but anticipate slower outperformance versus non-US stocks over the next five years.

Despite strong gains in gold and bitcoin in 2024, ISG does not view them as strategic portfolio assets, citing volatility and lack of cash flow generation.

Nuclear energy is gaining attention due to rising power demand from AI data centers.
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