Goldman Sachs: Maintains an optimistic forecast of $5,400 for the gold price by the end of the year

Goldman Sachs reports that the recent decline in gold prices is generally in line with previous trends. They point out that rising interest rate expectations and market volatility are the main factors driving the price drop. Darin Strowen, co-head of the global commodities research department, said on Wednesday, “Given our current pricing framework, this decline is not surprising.” He noted that increased interest rate expectations have impacted investor demand, especially through ETFs. Extreme market stress can also affect gold prices, as investors facing margin calls often sell gold along with other assets. He also mentioned that recent gains in gold have exceeded fundamental expectations, with some pullbacks reflecting a “certain degree of normalization.” However, Goldman Sachs remains optimistic overall, expecting gold prices to reach $5,400 by the end of the year. Their reasoning is supported by ongoing central bank gold purchases as governments diversify assets (shifting toward “assets with lower political and financial risks”).