Billionaire Ken Griffin warns on consequences of gold’s rally as Goldman targets nearly $5,000

Core Viewpoint - The ongoing rally in gold prices, which may reach $4,000 an ounce, signals underlying issues in U.S. markets, as highlighted by Ken Griffin of Citadel [2][6]. Group 1: Gold Price Predictions - Goldman Sachs analysts have raised their gold price forecast for December 2026 to $4,900 per ounce, up from a previous estimate of $4,300, due to strong inflows from western ETFs and central bank purchases [4]. - Goldman Sachs predicts that gold could trade near $5,000 an ounce by the end of next year, indicating a bullish outlook for the metal [3]. Group 2: Market Dynamics - The recent 17% rally in gold prices since August 26 is attributed to persistent ETF inflows and central bank buying, which are expected to continue [4]. - Analysts believe that ETF inflows will increase following anticipated 100 basis points in Federal Reserve rate cuts by mid-next year, suggesting that current ETF strength is sustainable [5]. Group 3: Investor Behavior - Ken Griffin warns that the preference for the dollar as a safe haven is diminishing, leading investors to seek alternatives like gold and bitcoin [6][7]. - There is a trend of asset inflation away from the dollar as investors look to diversify and reduce exposure to U.S. sovereign risk [7][8].