Goldman Sachs: Maintains Expectation of Gold Bull Market, Upside Logic Remains Unchanged

BlockBeats News, March 31st - Despite a recent selloff in the gold price, Goldman Sachs still maintains its bullish view on gold and predicts that by the end of 2026, gold will regain its upward momentum.

Analysts Lina Thomas and Daan Struyven stated in their report that the mid-term outlook for gold remains robust. With central banks around the world continuing to buy gold and the U.S. expected to have two more rate cuts this year, the gold price is expected to reach $5400 per ounce. They pointed out that in the short term, the gold price still faces "tactical downside risks," and if the energy supply shock worsens, the gold price could fall to $3800 per ounce. Nevertheless, if the Iran war prompts countries to accelerate the reduction of "traditional Western assets" and achieve diversified allocation, gold still has significant upside potential.

The report also mentioned that concerns that some central banks may sell gold to support their currencies are unlikely to materialize. Gulf countries are more likely to intervene by reducing their U.S. Treasury holdings. Assuming no additional private sector investment, analysts expect mid-term price volatility to moderate, leading to a renewed acceleration in official sector gold purchases, with an average monthly purchase of around 60 tons. (FX Street)