Goldman Sachs: Central Bank Buying to Support Gold Prices

Odaily Planet Daily News Goldman Sachs stated that despite pressure from the Federal Reserve’s relatively hawkish expectations, central bank buying is expected to provide a floor for gold prices. Demand remains strong currently. According to the bank’s estimates, central banks purchased 81 metric tons of gold in May, with the three-month average monthly purchase reaching 67 metric tons, far exceeding the pre-2022 average of 17 metric tons. Goldman Sachs analysts said: “We believe that the trend of central banks increasing their gold holdings will persist for many years, as they hedge against geopolitical and financial risks through reserve diversification.” The bank forecasts that average monthly purchases will be 50 metric tons this year and 40 metric tons next year. (Jin Shi)