Multiple Factors Support Long-Term Bull Run for Gold, Investment Banks Still Bullish on Gold

BlockBeats News, April 10: Institutions such as ANZ Bank and Goldman Sachs stated that despite the market turmoil caused by the Middle East war, gold may still see a long-term rebound. Analysts from these institutions believe that the resilience of central bank demand, ongoing geopolitical uncertainties, expectations of a Fed rate cut, and diversified investments in USD-denominated assets are all reasons for a long-term bullish view. ANZ Bank analysts Soni Kumari and Daniel Hynes stated that they expect prices to eventually recover as the macro mix of economic growth and inflation deteriorates, paving the way for central banks to resume rate cuts. ANZ Bank maintains its outlook, forecasting a year-end gold price of $5800.

The analysts wrote that central bank gold purchases are expected to remain a key supportive pillar, with official purchases expected to reach around 850 tons by 2026. ANZ Bank's bullish stance aligns with similar forecasts from Goldman Sachs and National Bank of Canada in early March. Goldman Sachs maintains its forecast of $5400, citing ongoing central bank gold purchases and expectations of a 50-basis-point Fed rate cut this year. Goldman analysts had previously stated that if the disruption in the Strait of Hormuz continues, gold still faces short-term tactical downside risks. However, prolonged conflict may accelerate the diversification of traditional Western assets, providing long-term support for the gold price. (FX678)