Goldman Sachs: Maintains Bullish Outlook on Gold, Upward Logic Remains Unchanged

Odaily According to Goldman Sachs, despite recent selling pressure on gold prices, the firm maintains its bullish view on gold and predicts a resumption of the upward trend by the end of 2026. Analysts Lina Thomas and Daan Struyven stated in a report that the medium-term outlook for gold remains solid. Due to continued central bank purchases and expectations of two more U.S. interest rate cuts this year, gold prices could reach $5,400 per ounce. They noted that gold still faces "tactical downside risks" in the short term, and if energy supply shocks worsen further, prices could potentially fall to $3,800 per ounce. Nevertheless, if the Iran war prompts countries to accelerate the reduction of their holdings in "traditional Western assets" and diversify their allocations, gold still has significant upside potential. The report also mentioned that concerns about some central banks potentially selling gold to support their currencies are unlikely to materialize. Gulf countries prefer to intervene by reducing their holdings of U.S. Treasury bonds. Assuming no additional private sector investment, analysts expect medium-term price volatility to moderate, which would again accelerate the pace of official sector gold purchases to an average of about 60 tons per month. (Jin10)