Goldman Sachs Highlights the Impact of Liquidity on Gold ETFs through December 2026

The financial institution continues to maintain a bullish outlook on the precious metals market, with particular focus on the crucial role of liquidity in price movements. According to analyses provided to Jin10, the gold market dynamics at the beginning of the year reveal a scenario where the quality of capital flows outweighs speculative pressures, making available liquidity a key factor in price movements toward the target of $5,400 per ounce by the end of 2026.

Western Capital Flows and Pressure on Gold ETFs

Most of the fluctuations recorded in the early months originate from massive capital inflows from Western markets rather than speculative activity. This distinction is essential to understanding the relative stability of gold prices, as structured capital flows, often channeled through ETFs, maintain greater predictability compared to speculative trading. Liquidity in gold ETFs is a key element in supporting Goldman Sachs’s bullish positions, as it allows large operators to accumulate positions without causing excessive downward pressure.

Silver Volatility Amid Liquidity Restrictions and Market Opportunities

In the silver segment, dynamics are significantly more complex. Price adjustments have been more pronounced due to notably restricted liquidity conditions in the London market. This liquidity shortage amplifies bidirectional movements, creating both opportunities and risks for investors. Pressure on London liquidity, combined with bullish option structures similar to those observed in the gold market, has generated extreme behaviors that make silver prices more volatile and unpredictable compared to gold.

Toward the End of 2026: The Decisive Role of Liquidity in Metal Markets

Looking ahead to December 2026, liquidity remains a central factor in Goldman Sachs’s forecasts. The availability of liquidity in ETFs and physical markets will be crucial in determining whether gold prices can reach the projected target of $5,400 per ounce. Recent movement lessons suggest that markets with better structural liquidity, such as the gold market, will continue to benefit from Western capital flows, while less liquid markets will have to contend with ongoing volatile pressures.