SPOT GOLD DROPS TO LOWEST LEVEL SO FAR THIS YEAR; SPOT GOLD FALLS 4.7% TO $4,280.24 A TROY OUNCE

Goldman Sachs Group Inc. raised its 2026 Brent and WTI price forecasts to $85 and $79 a barrel, up from $77 and $72, citing the prolonged disruption of flows through the Strait of Hormuz as the largest-ever oil supply shock. Analysts assume shipments remain at 5% of normal for six weeks, followed by a gradual one-month recovery, with Middle East crude losses peaking at 17 million barrels a day and cumulative losses exceeding 800 million barrels. Goldman highlighted the structural risks of concentrated production and vulnerable energy infrastructure in the Middle East.

Gold erased its 2026 gains, falling for a ninth session as Middle East tensions lifted inflation risks and rate expectations. Bullion dropped nearly 5% below $4,300, its worst weekly loss since 1983, pressured by reduced prospects for Fed easing and forced selling. Markets remained volatile, with crude elevated and equities choppy. Analysts said the rapid selloff mirrors past shocks, often followed by rallies. Despite oversold signals, hedge funds raised net-long positions. Spot gold fell 4.8% to $4,275.56 in Singapore.