Goldman Sachs: The recent decline in gold prices is due to increased interest rate expectations and market volatility, while maintaining an optimistic forecast of $5,400 for gold prices by the end of the year

By: rootdata|2026/03/25 16:42:00
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According to Jinshi Data, Goldman Sachs stated that the recent decline in gold prices is generally consistent with past trends, noting that the increase in interest rate expectations and market volatility are the main factors leading to the price drop.

The co-head of the global commodities research department, Damien Courvalin, said on Wednesday, "Given our current pricing framework, this decline is not surprising." He pointed out that the rise in interest rate expectations has impacted investor demand, particularly through ETFs. Extreme market pressure can also affect gold prices, as investors facing margin calls often sell gold along with other assets.

He also noted that the recent rise in gold prices has exceeded fundamental expectations, with some of the pullback reflecting "a certain degree of normalization." However, Goldman Sachs maintains its overall optimistic outlook, expecting gold prices to reach $5,400 by the end of the year. The reasoning is supported by the ongoing central bank purchases of gold as countries seek to diversify their assets (i.e., shifting towards assets with "lower political and financial risks").

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