What Does Gold's "Niche Market" Mean? Goldman Sachs: Every 0.01% Increase in Allocations Lifts Gold Prices by 1.4%

Gold remains underallocated in U.S. investment portfolios, yet it is highly sensitive to incremental capital. Goldman Sachs estimates that for every 0.01 percentage point rise in gold allocations, prices could climb about 1.4%. As "currency debasement trades" heat up and U.S. debt risks continue to fester, gold's low allocation and limited liquidity could amplify the upside from capital inflows.