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 remains bullish on gold and expects that by the end of 2026, gold will regain an upward trend. In the report, analysts Lina Thomas and Daan Struyven said that gold’s medium-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 is likely to 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 selling “traditional Western assets” and diversify their allocations, gold’s upside potential remains substantial. The report also mentioned that concerns that some central banks might sell gold to support their domestic 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, averaging about 60 tons per month. (Jin Ten) (Source: ODAILY)