Goldman Sachs: Maintaining bullish gold market expectations; the upward momentum remains unchanged

ME News update, March 31 (UTC+8). Despite a recent selloff in gold prices, Goldman Sachs still maintains its bullish outlook on gold and predicts that gold will resume its uptrend by the end of 2026. Analysts Lina Thomas and Daan Struyven said in the report that gold’s mid-term outlook remains solid. With central banks around the world continuing to buy gold, and the U.S. expected to cut rates twice more this year, gold could reach $5,400 per ounce. They noted that in the short term, gold still faces “tactical downside risk,” and if energy supply shocks further worsen, gold could fall to $3,800 per ounce. Even so, if the Iran war prompts countries to accelerate their reduction of “traditional Western assets” and diversify their allocations, gold’s upside potential remains substantial. The report also mentioned that concerns about some central banks selling gold to support their domestic currencies are unlikely to materialize. Gulf countries are more likely to intervene by reducing holdings of U.S. Treasuries. Assuming there is no additional investment from the private sector, analysts expect mid-term price volatility to ease, which would cause the official sector’s gold purchases to pick up again, with average monthly buying of about 60 tons. (Jin10) (Source: ODAYI)