Goldman Sachs Exchanges Recession watch: How to hedge now
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Apr 9, 2025 
Daan Struyven, Co-Head of Global Commodities Research at Goldman Sachs, dives into the rising tension around recession fears alongside Senior Strategist Allison Nathan. The discussion highlights gold's evolving role as a reliable hedge, showcasing its significance amid economic uncertainty. Struyven also addresses the bearish outlook on oil prices and OPEC's production strategies, while exploring effective hedging strategies using oil puts. Get ready for insightful market dynamics and practical tips for safeguarding investments!
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Gold's Performance During Volatility
- Gold is viewed as a safe haven asset, performing well when the economy struggles.
- However, recent market volatility has shown that gold can sell off alongside risky assets due to forced selling for liquidity.
Gold as a Recession Hedge
- Consider gold as a hedge against recession risk, especially given current market conditions.
- This is due to potential tail policy risks like trade policy or changes in US governance impacting investor trust.
Gold Price Forecast
- Gold is forecasted to rise by 10% to $3,300 per troy ounce if the US economy stagnates but avoids recession.
- In a recession scenario, with increased ETF demand and central bank purchases, it could reach $4,250.