Goldman still bullish on gold, China underpinning demand outlook

Investing.com -- Goldman Sachs said it remains bullish on gold in a note on Monday, citing both potential Fed rate cuts and China's unwavering demand as key drivers, which have helped push gold prices to record highs. This positive outlook comes despite rising US interest rates, which usually tends to lower gold prices. 

While the Chinese market is sensitive to price fluctuations, the brokerage sees structural changes creating an "unshakeable bull market" for gold in China. Lower interest rates and rising economic uncertainties are boosting demand, even as surging prices cool jewelry purchases. 

Additionally, China's central bank has been on a gold-buying spree in recent months, stockpiling hundreds of tonnes. Analysts say that these significant purchases are driven by concerns about US financial sanctions and the sustainability of US sovereign debt.

Goldman Sachs underscores the significance of central bank gold purchases, which have seen a threefold increase since mid-2022. "We still see very significant value in long gold positions, and maintain our bullish $2,700 forecast (a 12% increase over current spot prices) for 2025," they added.

This, coupled with the anticipated return of Western capital to the gold market due to potential Fed rate cuts, paints a highly optimistic long-term picture for gold. 

While the Chinese market might experience short-term adjustments in demand due to price sensitivity, the overall outlook remains positive.

 

Source: Investing.com

Останні публікації
Oil prices slip slightly lower; caution ahead of Trump inauguration
22.01.2025 - 09:00
Gold prices steady ahead of Trump inauguration; volatility likely
22.01.2025 - 09:00
European natural gas prices dip ahead of Trump's inauguration
22.01.2025 - 09:00
Column-Global aluminium market faces a year of trade turbulence: Andy Home
22.01.2025 - 09:00
Trump directs US government to cut consumer costs, gives no details
22.01.2025 - 09:00
Oil dips as market awaits Trump's executive orders on energy
22.01.2025 - 09:00
FBI Acting Director Paul Abbate retires from the bureau, official says
22.01.2025 - 09:00
Analysis-Trump faces stiff challenges delivering on his promised 'Golden Age'
22.01.2025 - 09:00
Trump revokes Biden 50% EV target, freezes unspent charging funds
22.01.2025 - 09:00
Trump repeals Biden's efforts to block oil drilling on US coasts, Arctic
22.01.2025 - 09:00
Gold prices shine on safe-haven demand as traders try to gauge Trump's policies
22.01.2025 - 09:00
Texas ports, pilots suspend some operations as winter storm hits
22.01.2025 - 09:00
European gas prices volatile as Trump lifts moratorium on new export licenses
22.01.2025 - 09:00
Trump executive orders target climate, immigration policy, federal employees
22.01.2025 - 09:00
Factbox-European companies exposed as Trump takes aim at US offshore wind
22.01.2025 - 09:00

© Analytic DC. All Rights Reserved.

new
Аналіз ринку Як вплине завтра звіт NFP на курс долара США?