Gold Could Reach $4,000: Why Central Banks Are Shifting to Precious Metal

Gold prices are poised for a significant jump, potentially reaching $4,000 per ounce, according to Goldman Sachs. The bank attributes this upward trajectory to central banks increasingly favoring gold as a safe-haven asset in the wake of geopolitical events like the Russia-Ukraine war. 2022 saw a dramatic shift in reserve strategies as Western sanctions on Russian assets disrupted trust in traditional currencies like the dollar and euro. This has triggered a surge in demand for gold, with monthly purchases by central banks increasing from 17 tons pre-war to 94 tons per month now.