"The PHLX Gold/Silver Sector Index (^XAU) has trimmed its YTD gain to 3.5% after the gold price set records early in the year, indicating a disconnect between gold prices and miner performance."
"Higher real yields raise the opportunity cost of owning a non-yielding asset, and the policy pause limits the dovish tailwind that lifted bullion through January, impacting miners negatively."
"Goldman Sachs is keeping its $5,400 per troy ounce end-of-2026 target but flagged near-term downside risks tied to further liquidation if equities and bonds correct."
"Deutsche Bank projects gold could reach $8,000 per ounce within five years if reserve managers lift bullion allocations from 30% to 40% of global reserves, suggesting significant long-term potential."
The PHLX Gold/Silver Sector Index is down 1% despite gold prices increasing to $4,644/ounce. SPDR Gold Shares are trading around $425 but are down 2% for the week. Miners are not benefiting from gold's rebound due to a shift in risk appetite and higher Treasury yields. Goldman Sachs maintains a $5,400 gold price target for 2026, while Deutsche Bank predicts a potential rise to $8,000 per ounce in five years if reserve allocations increase.
Read at 24/7 Wall St.
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