Goldman Sachs: Maintains bullish outlook for gold; the underlying logic for the upward trend remains unchanged.

Despite the recent gold price sell-off, Goldman Sachs maintains its bullish view on gold, predicting a renewed 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. Gold prices are expected to reach $5,400 per ounce due to continued central bank gold purchases and two more expected US interest rate cuts this year. They noted that gold prices still face "tactical downside risks" in the short term, potentially falling to $3,800 per ounce if energy supply shocks worsen further. Nevertheless, if the Iran war prompts countries to accelerate the reduction of "traditional Western assets" and diversify their portfolios, the upside potential for gold remains significant. The report also mentioned that concerns about some central banks potentially selling gold to support their currencies are unlikely to materialize. Gulf states are more inclined to intervene by reducing their holdings of US Treasury bonds. Assuming no additional private sector investment, analysts expect medium-term price volatility to moderate, which will lead to a renewed acceleration in official gold purchases, averaging approximately 60 tons per month. (Jinshi)