Gold is strongly supported by Goldman Sachs in a bear market! Fed rate cuts and central bank gold purchases will help push gold prices to $5,400.

Notice that, despite recent selling pressure on gold prices, Goldman Sachs maintains its bullish view and predicts that by the end of 2026, gold prices will resume their upward trend. Analysts Reena Thomas and Dan Struven pointed out in their report that the medium-term outlook for gold remains solid, due to continued purchases by central banks around the world and the expectation of two more interest rate cuts in the United States this year, which could push gold prices to $5400 per ounce. They stated that in the short term, gold prices still face "tactical downside risks", with the potential for prices to fall to $3800 per ounce if there is a deterioration in energy supplies. However, if the conflict in Iran prompts countries to accelerate their diversification away from "traditional Western assets", the potential for gold price increases remains significant. Since the outbreak of the conflict a month ago, gold prices have fallen by 13% as investors have been forced to liquidate positions amid falling stock markets and the market begins to digest the impact of monetary tightening policies. But analysts pointed out that this repricing has gone "overboard" and reflects an overemphasis on inflation channels, while neglecting the drag on economic growth, and added that historical experience shows that concerns about growth will ultimately prevail. They also stated that concerns about central banks selling gold to support their own currencies are unlikely to materialize. Gulf countries are more likely to intervene by liquidating U.S. treasuries as they "typically operate a dollar peg exchange rate system". Analysts stated that assuming no additional private sector investment, they expect medium-term price fluctuations to stabilize, which will accelerate official sector purchases, with average monthly purchases expected to be around 60 tons.