Goldman Sachs: Central Bank Purchases to Support Gold Prices

Odaily Planet Daily News Goldman Sachs stated that despite pressure from the Federal Reserve's relatively hawkish expectations, central bank purchases are expected to provide a floor for gold prices. Demand remains strong; according to the bank's estimates, central bank gold purchases in May amounted to 81 metric tons, with a three-month average monthly purchase volume of 67 metric tons, far exceeding the pre-2022 average of 17 metric tons. Goldman Sachs analysts said: "We believe that as central banks hedge geopolitical and financial risks through reserve diversification, the trend of central banks increasing their gold holdings will last for many years." The bank predicts that the average monthly purchase volumes for this year and next will be 50 metric tons and 40 metric tons, respectively. (Jinshi)