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

Deep Tide TechFlow message, March 31, despite recent selling pressure in the gold market, Goldman Sachs still maintains its bullish view on gold and predicts that by the end of 2026, gold will regain its upward trend. Analysts Lina Thomas and Daan Struyven said in the report that gold’s medium-term outlook remains solid. Because central banks in various countries continue to buy gold and the U.S. is expected to cut rates another two times this year, the price of gold is poised to reach $5,400 per ounce. They noted that in the short term, the gold price still faces “tactical downside risk,” and if energy supply shocks further worsen, the gold price 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 about some central banks possibly selling gold to support their local currencies are unlikely to materialize. Gulf states are more inclined to intervene by selling U.S. Treasuries. Assuming no additional investment from the private sector, analysts expect medium-term price volatility to ease, which would allow the official sector’s pace of buying gold to pick up again, with average monthly purchases of about 60 tons. (Jin Ten)