Central bank's demand for gold purchases rises, Goldman Sachs raises gold price expectations

Goldman Sachs pointed out that the demand for central bank gold purchases is becoming an important supporting factor in the gold market. The bank expects the global central bank to purchase an average of 50 tons of gold per month, higher than the previously predicted 41 tons.

If the central bank further expands its gold purchasing scale to 70 tons per month, the gold price may rise to $3200 per ounce by the end of 2025.

The continuous purchase of gold by central banks reflects the uncertainty of the global financial environment, especially as central banks around the world may increase their gold reserves to diversify risks against the backdrop of rising US dollar credit risk.

Structural central bank gold purchase demand is expected to push up gold prices by 9% by the end of the year. "- Goldman Sachs analyst

Policy uncertainty remains a key variable for gold prices, and trade concerns may exacerbate speculative demand for gold

Goldman Sachs emphasized that trade concerns and uncertainty in global economic policies may still push up gold prices to even higher levels. If policy uncertainty persists, gold may rise to $3300 per ounce due to increased speculative demand in the market.

If the Federal Reserve maintains interest rates unchanged, gold prices are expected to be around $3060 per ounce. If global concerns about the fiscal sustainability of the United States intensify, gold may further rise by 5% to $3250 per ounce.

In addition, Goldman Sachs believes that the safe haven demand in the financial market, trade friction and the US debt problem may all become the catalyst for the rise of gold price.

In the long run, gold remains the best hedge asset against economic and financial uncertainty. "- Goldman Sachs trading strategy team

FXCUE Editor's Opinion: Global safe haven demand boosts gold prices, long-term bull market may not be over yet

The gold market has recently been affected by multiple factors such as central bank gold purchases, trade concerns, and the direction of Federal Reserve policies. Although there may be a tactical pullback in gold in the short term, from a long-term trend perspective, global safe haven demand may still support further increases in gold prices.

Key factors that need attention:

1. Will the central bank continue to expand the scale of gold purchases

2. Adjustment of Federal Reserve monetary policy, especially changes in expectations of interest rate cuts

3. Will trade concerns intensify, driving up market demand for safe haven gold

4. Whether the US debt problem has worsened, triggering the trend of global central banks to sell US bonds and increase their holdings of gold

Overall, the long-term bull market in the gold market may not have ended yet. If global central bank demand for gold continues to grow in the future, gold prices may exceed Goldman Sachs' forecast of $3100 or even higher.