Goldman Sachs: Central Bank Purchases Expected to Support Gold Prices

Odaily Planet Daily News Goldman Sachs stated that despite pressure from the Fed's relatively hawkish expectations, central bank purchases are expected to provide a floor for gold prices. Demand remains strong, with the bank estimating that central banks purchased 81 metric tons of gold in May, and the three-month average monthly purchase volume is 67 metric tons, far exceeding the average level of 17 metric tons before 2022. "We believe that as central banks hedge geopolitical and financial risks through reserve diversification, the trend of central banks increasing their gold holdings will continue for many years," Goldman Sachs analysts said. The bank predicts that average monthly purchases will be 50 metric tons and 40 metric tons in the next two years, respectively. (Jin Shi)