Goldman Sachs: Maintains Overall Optimistic Outlook on Gold, Year-End Target Price of $5400 per Ounce

BlockBeats News, March 25th, Goldman Sachs stated that the recent decline in the price of gold is broadly consistent with historical patterns, with the main factors causing the price drop being the expectations of higher interest rates and market volatility. Dain Strubin, Head of Commodity Research at Goldman Sachs Global, stated today: Given our existing pricing framework, this downturn is not surprising. The recent rise in gold prices has exceeded fundamental expectations, and the phenomenon of some pullback reflects 'a certain degree of return to normalcy.' However, Goldman Sachs still maintains its overall optimistic outlook, expecting the gold price to reach $5400/ounce by the end of the year. The reason is that central bank gold purchases by various governments to achieve asset diversification (i.e., a shift to assets with 'lower political and financial risk') have provided support.