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

ME News message, March 31 (UTC+8). Despite a recent sell-off in gold prices, Goldman Sachs still maintains its bullish view on gold and predicts that by the end of 2026, gold will resume its uptrend. Analysts Lina Thomas and Daan Struyven said in the report that gold’s medium-term outlook remains solid. With central banks in various countries continuing to buy gold and the U.S. expected to cut rates twice more this year, gold is likely to reach $5,400 per ounce. They noted that in the near term, gold still faces “tactical downside risk”; if energy supply shocks further worsen, gold could fall to $3,800 per ounce. Even so, if an Iran war prompts countries to accelerate selling “traditional Western assets” and diversify their allocations, there is still significant upside potential for gold. The report also mentioned that concerns that some central banks might sell gold to support their local currencies are unlikely to materialize. Gulf countries are more inclined to intervene by reducing holdings of U.S. Treasuries. Assuming there is no additional investment from the private sector, analysts expect medium-term price volatility to ease, which would allow the official sector’s gold buying pace to pick up again, with average monthly purchases of about 60 tons. (Jin 10) (Source: ODAILY)