What is Goldman Sachs' forecast for gold prices and what factors are driving this prediction?

Goldman Sachs has revised its gold price forecast upward, primarily due to sustained central bank demand, which is expected to add 9% to gold prices by the end of the year. The bank has increased its assumption for monthly central bank gold purchases to 50 tonnes, up from its previous estimate of 41 tonnes. According to Goldman, this structural demand, combined with gradually increasing ETF holdings as interest rates decline, should outweigh any potential price drag from normalizing investor positioning, supporting their bullish outlook for gold.