Goldman Sachs kept its year-end Gold target at $5,400, while Gold traded near $4,500. Gold hit a record of about $5,600 per troy ounce in late January, then consolidated after a sharp sell-off in March. <\/p>\n
The bank expects central bank buying to rise in 2026 and to support prices later in the year. It estimates purchases will average 60 tonnes a month this year, above the 12-month moving average of 50 tonnes seen in March. <\/p>\n
Gold\u2019s near-term outlook is described as weak due to higher global bond yields and rising inflation expectations. The note also says Gold can be used as a source of cash if market conditions tighten. <\/p>\n
World Gold Council data shows the People\u2019s Bank of China bought 8 tonnes in April, the highest level since December 2024. Gold is about 9% of China\u2019s foreign exchange reserves. <\/p>\n
In Q1, global central banks bought 244 tonnes of Gold, up 3% year on year. The same data also shows more selling activity from some countries during the quarter.<\/p>\n
The short-term outlook for gold appears weak, as the precious metal has been consolidating around the $4,500 level since the sharp sell-off in March. Rising global bond yields, with the U.S. 10-year Treasury note recently hitting 4.8%, are making non-yielding assets like gold less attractive for now. This environment suggests caution for traders holding short-term positions.<\/p>\n
Traders should also be aware that gold could be used as a source of cash if equity markets become more volatile. With the S&P 500 showing signs of choppiness in recent weeks, a significant downturn could trigger liquidity-driven selling in the gold market. This presents a potential downside risk in the immediate future.<\/p>\n
Despite this, the underlying support for gold remains strong due to significant institutional demand. Global central banks purchased 244 tonnes in the first quarter of this year, which is a 3% increase over the same period in 2025. This robust buying is expected to create a solid price floor.<\/p>\n
The People’s Bank of China continues to be a key buyer, adding another 8 tonnes in April and bringing its total gold holdings to approximately 9% of its foreign exchange reserves. This buying continues a broader de-dollarization trend we saw accelerate throughout 2025 among several emerging market central banks. Such persistent demand is a powerful long-term bullish signal.<\/p>\n
This disconnect between short-term weakness and long-term strength suggests a strategy for options traders. One could consider buying call options with expiration dates late in the fourth quarter to capitalize on the expected year-end rally. Meanwhile, be prepared for potential price dips in the coming weeks, which could present better entry points.<\/p>\n
The long-term price target of $5,400 by year-end remains a key focal point. This is reminiscent of the consolidation we observed in late 2025 before the rally that pushed prices to a record high near $5,600 in January. The current market dynamic suggests a similar pattern may be unfolding, with central bank buying serving as the primary catalyst for the next move higher.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Goldman holds $5,400 gold target; prices near $4,500 as central bank buying supports late-year outlook.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-46998","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t