PRECIOUS METALS | Goldman Sachs: Central Bank Buying to Support Gold Prices

Goldman Sachs said central bank buying is expected to provide a floor for gold prices despite pressure from tighter Federal Reserve expectations. According to Jin10, the bank estimated that central banks bought 81 metric tons of gold in May, with a three-month average monthly purchase rate of 67 metric tons, far above the 17 metric tons average seen before 2022. Goldman Sachs analysts said the trend of central banks increasing gold holdings will continue for years as they diversify reserves to hedge geopolitical and financial risks. The bank forecast average monthly gold purchases of 50 metric tons this year and 40 metric tons next year.