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

Despite the recent sell-off in gold prices, Odaily Sachs maintains its bullish view on gold and predicts that it will resume its 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 gold purchases by central banks and two more expected interest rate cuts in the US this year. They pointed out that gold prices still face "tactical downside risks" in the short term, and could fall to $3,800 per ounce if the energy supply shock worsens 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 about 60 tons per month. (Golden Ten)