Goldman Sachs Year-End Gold Price Forecast
Analysts projected that gold prices could rise to $4,900 per ounce by the end of the year, driven by structural demand and ongoing central bank purchases.
Goldman Sachs analysts Lina Thomas and Daan Struyven shared their year-end forecast, stating that gold prices will continue their upward trend supported by structural demand despite increasing volatility.
Year-End Gold Ounce Target
Goldman Sachs analysts Lina Thomas and Daan Struyven, co-head of Global Commodities Research, predicted that gold will continue its upward trajectory with the support of structural demand. The analysts estimate that the precious metal could reach $4,900 per ounce by the end of the year.
Central Bank Purchases Increased
Goldman Sachs analysts expect central banks to purchase an average of 50 tons of gold per month this year. This amount represents an increase of approximately 300 percent compared to the monthly average of 17 tons before 2022.
Central Banks' Reserve Move
The analysts stated that central banks accumulating gold to diversify their reserves against geopolitical and financial risks is a structural trend that will last for several years. According to the bank's calculations, central banks purchased an average of 100 tons of gold in June.
Impact of Fed Policies
Goldman Sachs also expects the pressure stemming from the monetary policy of the US Federal Reserve to ease. The bank's economists predict that the downward trend in inflation will allow the Fed to keep interest rates steady this year.
Depreciation Concerns and Gold
Goldman Sachs stated that the trend known in the market as the 'debasement trade', which refers to shifting toward assets like gold against the depreciation of currencies, is also a factor that could push gold prices above the forecast in the medium term.
Portfolio Preferences of Private Investors
The analysts emphasized that the share of gold in private investors' portfolios remains low. It was stated that recent geopolitical developments could accelerate private investors in diversifying their portfolios as well.