Goldman Sachs: The recent decline in gold prices is due to increased interest rate expectations and market fluctuations, which still maintains the optimistic forecast of gold prices of US$5400 at the end of the year

According to reports from Jin Shi, Goldman Sachs said that the recent decline in gold prices is roughly consistent with previous trends, pointing out that increased interest rate expectations and market fluctuations are the main factors leading to price declines.<br /> "Given our existing pricing framework, this decline is not surprising," Dan Struven, co-head of global commodities research at the bank, said on Wednesday. He pointed out that rising interest rate expectations have had an impact on investor demand, especially through ETFs. Extreme market pressures can also have an impact on gold prices, as investors facing margin calls tend to sell gold along with other assets.<br /> He also pointed out that gold's recent rally has exceeded fundamental expectations, and some of the correction reflects "a certain degree of return to normalization." However, Goldman Sachs maintains its optimistic overall forecast, predicting that gold prices will reach $5400 by the end of the year. The reason is that governments 'continued central bank gold purchases to diversify assets (i.e., to assets with "lower political and financial risks") provide support.