Goldman Sachs: If the Fed cuts interest rates by 25 basis points this week, gold prices may face a small correction in the short term

Odaily Odaily News Goldman Sachs predicts that if the Federal Reserve chooses to cut interest rates by 25 basis points this week, gold may face a small correction in the short term, but then it will hit a new record high driven by the inflow of funds into gold ETFs. Goldman Sachs analysts Lina Thomas and Daan Struyven pointed out in the report that "the Fed's interest rate cut will drive Western funds to flow back into gold ETFs, a factor that has been largely absent in the surge in gold prices over the past two years." They reiterated Goldman Sachs' forecast that gold prices will rise to $2,700 an ounce early next year. Goldman Sachs economists expect the Federal Reserve to cut interest rates by 25 basis points on Wednesday. Under this basic forecast scenario, gold prices may see some tactical declines, but it is expected that as the Federal Reserve starts an easing cycle, gold ETFs will attract gradual inflows of funds, thereby driving up gold prices. (Jinshi)