Goldman Sachs Maintains Bullish Outlook on Gold, Upside Logic Remains Unchanged

On March 31, despite recent sell-offs in gold prices, Goldman Sachs continues to uphold its bullish stance on gold, predicting that the price will regain upward momentum by the end of 2026. Analysts Lina Thomas and Daan Struyven stated in a report that the medium-term outlook for gold remains solid. With central banks around the world continuing to purchase gold and the expectation of two more interest rate cuts in the U.S. this year, gold prices are projected to reach $5,400 per ounce. They noted that gold prices face ‘tactical downside risks’ in the short term, and if energy supply disruptions worsen, prices could dip to $3,800 per ounce. Nevertheless, if the Iran conflict prompts countries to accelerate the reduction of ‘traditional Western assets’ and diversify their holdings, there remains significant upside potential for gold. The report also mentioned that concerns about some central banks potentially selling gold to support their currencies are unlikely to materialize. Gulf countries are more inclined to intervene by reducing their holdings of U.S. Treasury bonds. Assuming no additional private sector investments, analysts expect medium-term price volatility to ease, which will accelerate the pace of gold purchases by official sectors, averaging about 60 tons per month.