Goldman Sachs: Gold is a More Effective Hedge Against the Risk of a Dollar Collapse Than BTC

Goldman Sachs predicts that the price of gold will reach $3,700 per ounce by the end of 2025 and rise to $4,000 by mid-2026. This forecast is based on the ongoing demand for gold purchases by global central banks, investors' concerns about economic recession, and the safe-haven sentiment towards U.S. assets.
Daan Struyven, Co-Head of Global Commodity Research at Goldman Sachs, pointed out that risk-reward analysis favors gold. Both Bitcoin and gold have risen significantly over the past three years, but Bitcoin is more volatile, more sensitive to pullbacks, and has a higher positive correlation with tech stocks. Therefore, if one wants to hedge against downside risks in stocks, the lower correlation and lower volatility mean a relatively significant positive allocation to gold.