Goldman Sachs Group indicates that central banks are expected to increase their gold purchases, aiding a recovery in gold prices by year-end. Analysts Lina Thomas and Dan Strevin stated in a research report published on May 15 that central banks' average monthly gold purchases could rise to 60 tonnes by 2026. Based on a revised accumulation model, the 12-month moving average of central bank gold purchases reached 50 tonnes in March, up from a previous figure of 29 tonnes. The analysts cited internal research, noting that central banks have a long-term, structural demand for gold allocation. Recent shifts in geopolitical dynamics may continue to drive accelerated diversification of asset holdings by various nations. Since the outbreak of conflict in the Middle East, gold prices have faced downward pressure. Rising energy prices have intensified global inflationary pressures, reducing central banks' willingness to ease monetary policy. With no signs of the conflict abating, a sell-off in global bond markets has further weighed on the price of gold, a non-yielding asset.
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