According to analysts at Goldman Sachs, the recent correction in the gold price offers investors another chance to buy in. The experts remain convinced that the price of the yellow metal will continue to rise. In fact, Goldman Sachs still considers gold to be the most promising commodity overall.

The analysts attribute the gold price decline to short-term, technical factors such as the liquidation of positions due to the stock market crash and some rotation into alternative assets. However, the major bank remains convinced that the precious metal has strong medium-term support.

According to Goldman Sachs, the ‘mutual tariffs’ of the US government will burden global economic growth and further strengthen the importance of defensive assets like gold. Accordingly, the analysts maintain their forecast that an ounce of gold will cost $3,300 by the end of the year. They see the trading range until then between $3,250 and $3,520 per ounce. Moreover, they expect a stronger increase rather than a downside risk.

Structural Demand from Emerging Markets Provides Support

Goldman Sachs also sees further support for the precious metal in the structural demand from central banks in emerging markets and increasing inflows into gold exchange-traded funds (ETFs) due to recession fears and interest rate cuts by the US Federal Reserve.

The experts also point out that gold and other precious metals are exempt from the new US tariffs, and they expect this to remain the case.

Risks in Industrial Metals

For industrial metals, Goldman Sachs sees short-term risks particularly for copper. Here, the price could fall below $9,000 per ton in the second quarter – especially if trade disputes continue to increase.

Gold, however, the major bank predicts, will stand out positively, as the combination of macroeconomic risks and relatively low investor positioning would pave the way for further gains. Therefore, they said, this and later potential corrections in gold are viewed as opportunities to take long positions.