Goldman Sachs: Reaffirms year-end gold price target of $5,400, warns of significant near-term downside pressure

Goldmoney reports that on April 30th, Goldman Sachs released a research report adopting a “structurally bullish, tactically cautious” dual stance on the gold market.
Although the bank reaffirmed its year-end gold price target of $5,400 per ounce, it also explicitly warned that gold still faces significant downside pressure in the short term.
Goldman Sachs analysis pointed out that while the previously accumulated long positions in gold and open interest in bullish options have largely been digested by the market, gold prices still appear quite fragile in the current environment.
Analysts warned that the short-term trend of gold prices remains downward, and if the situation in the Strait of Hormuz continues to be turbulent, and bond or stock markets weaken further, gold could face a new wave of selling pressure.
Under the baseline scenario, Goldman Sachs expects that the private sector will not further net sell gold, nor will there be additional buying beyond the mild support brought by the Federal Reserve’s rate cuts. (Dongxin News)