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2026-07-17 20:44:13
[Goldman Sachs: Central Bank Buying Provides a Solid Bottom for Gold; Geopolitical Safe-Haven Demand Will Continue for Several Years] ⑴ Goldman Sachs points out that although expectations of Fed tightening are putting downward pressure on gold prices, the continued strong gold buying by central banks will provide a solid bottom for the gold market. This structural force is sufficient to buffer the selling pressure brought by rising policy interest rates. ⑵ According to institutional estimates, global central banks' net gold purchases in May were approximately 81 metric tons, with a monthly average of approximately 67 metric tons over the past three months, far exceeding the historical average of 17 metric tons before 2022, indicating that official sectors' willingness to allocate gold has reached a new level. ⑶ Goldman Sachs believes that the motivation of central banks to diversify their reserve assets to hedge against geopolitical and financial risks will continue to strengthen. This trend of increasing holdings is expected to continue for many years, with monthly gold purchases projected to remain around 50 metric tons and 40 metric tons in the next two years, respectively. (4) From a trading psychology perspective, central bank buying is stable and planned, unlike the emotional entry and exit of speculative funds. It often provides counter-trend support when gold prices pull back, and investors can use this to correct their simplistic linear judgment on the downside potential of gold.
