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

Deep Tide TechFlow News, March 25 — According to Jin10 Data, Goldman Sachs stated that the recent decline in gold prices is generally in line with previous trends. They pointed out that rising interest rate expectations and market volatility are the main factors driving the price drop. Darrell Struven, co-head of the global commodities research department at the firm, said on Wednesday, “Given our current pricing framework, this decline is not surprising.” He noted that rising interest rate expectations have already impacted investor demand, especially through ETFs. Extreme market pressures 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. The reason is the ongoing central bank gold purchases by various governments to achieve asset diversification (i.e., shifting toward assets with lower political and financial risks).