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

ME News update: On March 31 (UTC+8), despite a recent selloff in gold prices, Goldman Sachs still maintains its bullish outlook for gold and forecasts that gold will resume its upward trend by the end of 2026. In a report, analysts Lina Thomas and Daan Struyven said 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 another two times 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 worsen further, gold could fall to $3,800 per ounce. Even so, if the Iran war leads countries to accelerate selling “traditional Western assets” and achieve diversified 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 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. (Jin10) (Source: ODAILY)