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

ME News reports that on March 31 (UTC+8), despite recent sell-offs in gold prices, Goldman Sachs maintains its bullish outlook on gold and forecasts that it will regain its upward momentum by the end of 2026. Analysts Lina Thomas and Daan Struyven stated in their report that the medium-term outlook for gold remains solid. With central banks around the world continuing to purchase gold and the United States expected to cut interest rates twice more this year, gold could reach $5,400 per ounce. They pointed out that in the short term, gold still faces “tactical downside risks,” and if energy supply shocks worsen further, the price could fall to $3,800 per ounce. Nevertheless, if the Iran conflict prompts countries to accelerate the divestment from “traditional Western assets” and pursue diversification, the upside potential for gold remains significant. The report also mentioned that concerns about some central banks potentially selling gold to support their domestic currencies are unlikely to materialize. Gulf countries are more inclined to intervene by selling U.S. Treasuries. Assuming no additional private-sector investments, analysts expect mid-term price volatility to ease, which would allow official sector gold purchases to accelerate again, with an average monthly buy of about 60 tons. (JinTen) (Source: ODAILY)