Goldman Sachs: The recent decline in gold prices is due to rising interest rate expectations and market volatility, maintaining a year-end gold price forecast of $5,400.

Gate News reports that on March 25, Goldman Sachs stated that the recent decline in gold prices is generally in line with previous trends. Rising interest rate expectations and market volatility are the main factors driving the price drop. Darin Strowen, co-head of the firm’s global commodities research department, said on Wednesday, “Given our current pricing framework, this decline is not surprising.” He noted that rising interest rate expectations have impacted investor demand, especially through gold ETFs (exchange-traded funds). Extreme market stress can also affect gold prices, as investors facing margin calls often sell gold along with other assets. Strowen also pointed out that recent gains in gold have exceeded fundamental expectations, and some pullbacks reflect a “certain normalization.” However, Goldman Sachs remains optimistic, expecting gold prices to reach $5,400 by the end of the year, supported by central banks continuing to buy gold for diversification and shifting toward assets with “lower political and financial risks.”