Goldman Sachs: Maintains Optimistic Year-End Gold Price Forecast of $5,400

Deep Tide TechFlow reports that on March 25, according to Jin10 Data, Goldman Sachs stated that the recent decline in gold prices aligns broadly with historical trends. The bank pointed out that rising interest rate expectations and market volatility are the main factors driving the price drop. Damien Courvalin, co-head of the bank's Global Commodities Research division, said on Wednesday: "Given our current pricing framework, this decline is not surprising." He noted that the rise in interest rate expectations has impacted investor demand, particularly through ETFs. Extreme market stress can also affect gold prices, as investors facing margin calls often sell gold along with other assets. He further mentioned that gold's recent rally had exceeded fundamental expectations, and the partial pullback reflects "a certain degree of normalization." However, Goldman Sachs remains optimistic in its overall outlook, forecasting that gold prices will reach $5,400 by year-end. The rationale is supported by continued central bank gold purchases as governments seek to diversify assets, shifting toward those with "lower political and financial risks."