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G Sachs: Central Bank Buying Power Expected to Lift Gold Prices Before Year-End
G Sachs stated that it expects central banks worldwide to step up gold purchases to support a rebound in gold prices before year-end. Since the outbreak of war in the Middle East, ...
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G Sachs stated that it expects central banks worldwide to step up gold purchases to support a rebound in gold prices before year-end. Since the outbreak of war in the Middle East, rising energy costs have intensified global inflationary pressures, reducing the likelihood of monetary easing by central banks and weighing on gold prices. Spot gold continued to hover at low levels today (18th), last reported at USD4,540.73 per ounce. Gold futures for June delivery fell 0.4% to USD4,543.6 per ounce.

G Sachs expects central bank purchases this year to increase to an average of 60 tonnes per month. According to an internal survey, central banks show strong underlying interest in gold, and recent geopolitical developments may reinforce investment diversification. However, G Sachs remains cautious on the short-term outlook for gold prices, noting that if equities face a sell-off and private investors encounter liquidity needs, gold would serve as a "natural source of funds."

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