Baosheng Group: Emerging market Central Banks buying gold may continue for 3-5 years

Jin10 Data, October 8 - Carsten Menke, an analyst at Baosheng Group, pointed out that the gold purchasing behavior of emerging market Central Banks may continue for another 3 to 5 years. His prediction is based on the judgment that “the gold allocation target of emerging market Central Banks is 20%-25%”, a ratio that is consistent with the average level of global Central Bank gold allocations. Menke stated that such gold purchasing behaviors are expected to continue to be a structural driving factor for gold prices - as the intent of emerging market Central Banks is to reduce reliance on the dollar as a reserve currency, while also mitigating their own risks from U.S. sanctions. He further noted that the typically cyclical demand for safe-haven assets, if the dollar weakens in the future and concerns about the Fed's independence are confirmed, may also turn into a structural factor supporting gold prices. Baosheng Group reaffirmed its long-term positive outlook on gold, raising its three-month gold price target to $4150 per ounce and its twelve-month target to $4500 per ounce.