TechFlow News, March 25: According to JIN10 Data, Goldman Sachs stated that the recent decline in gold prices broadly aligns with historical patterns. The bank identified rising interest rate expectations and heightened market volatility as the primary drivers behind the price drop. Dan Struven, Co-Head of Global Commodities Research at the firm, said on Wednesday, “Given our current pricing framework, this decline is not surprising.” He noted that rising interest rate expectations have already dampened investor demand—particularly via ETFs. Extreme market stress can also impact gold prices, as investors facing margin calls often liquidate gold alongside other assets. Struven added that gold’s recent rally had outpaced fundamental expectations, and some of the recent pullback reflects “a degree of normalization.” Nonetheless, Goldman Sachs maintains its overall bullish outlook, forecasting gold prices to reach $5,400 by year-end. This expectation is underpinned by ongoing central bank gold purchases—driven by governments’ efforts to diversify reserves toward assets perceived as carrying lower political and financial risk.
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