Multiple Factors Support Long-Term Bull Run for Gold, Investment Banks Still Bullish on Gold

April 10: Banks including ANZ and Goldman Sachs say gold could still stage a long-term rebound despite market turmoil from the Middle East conflict. Analysts at these firms cite four key drivers for the bullish long-term outlook: central banks’ resilient gold demand, persistent geopolitical uncertainties, expectations of Fed rate cuts, and investors diversifying into U.S. dollar-denominated assets. ANZ analysts Soni Kumari and Daniel Hynes note gold prices will eventually recover as a worsening mix of economic growth and inflation paves the way for central banks to resume rate cuts. The bank maintains its year-end gold price forecast of $5,800. Central bank gold purchases will remain a key support pillar, with official purchases seen hitting around 850 tons by 2026, the analysts add. ANZ’s bullish stance aligns with similar calls from Goldman Sachs and National Bank of Canada in early March. Goldman Sachs sticks to its $5,400 year-end forecast, pointing to ongoing central bank gold buying and expectations of a 50-basis-point Fed rate cut this year. The firm’s analysts previously noted that while continued Strait of Hormuz disruption poses short-term tactical downside risks for gold, prolonged conflict could accelerate diversification away from traditional Western assets—providing long-term price support. (Source: FX678)