Strong demand from the central bank, Goldman Sachs raised the target price of gold, with a sword of $3,100!

There has been a sharp correction in the price of gold these days. However, Wall Street's bullish sentiment towards gold is still strong, and Goldman Sachs has even raised its year-end target price for gold from the original $3,000 to $3,100 per ounce.

Goldman Sachs analysts Lina Thomas and Daan Struyven pointed out in their latest report that strong central bank demand and gold ETF capital inflows supported their expectations.

In fact, since the beginning of this year, the price of gold has hit a new high for seven consecutive weeks, continuing the upward trend of last year. Goldman Sachs pointed out that the continuous rise in gold prices is mainly driven by three factors: the increase in demand for gold purchases by the central bank, the continuous interest rate cuts by the Federal Reserve, and the recent increase in investors' concerns about US President Trump's destructive tariff policy.

Goldman Sachs predicts that the average monthly purchase of gold by the central bank may reach 50 tons, far exceeding previous expectations. And:

"If the uncertainty of economic policies, including tariff policies, persists, the increase in speculative positions may push the price of gold to soar to $3,300 per ounce."

This level means that the price of gold will increase by 26% during the year.

In addition, it is estimated that in December 2024 alone, global central banks bought 108 tons of gold. Analysts believe that inflation concerns and rising financial risks may push central banks around the world to buy more gold, especially those holding a large amount of US Treasury bonds.

In addition to the central bank's demand, Goldman Sachs also expects that the Fed's two interest rate cuts will "gradually increase" the gold ETF positions.

However, the price of gold has recently adjusted back. Up to now, the spot price of gold has hovered around $2,913 per ounce, having exceeded $2,942 in the previous week, setting a record high, but Goldman Sachs is still firmly bullish.

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