Global central banks continue their robust gold acquisitions, with Goldman Sachs predicting bullion prices will scale fresh peaks in subsequent quarters. The Wall Street titan's recent analysis reveals central banks and institutions purchased an average 77 tonnes monthly from January through May 2023, marginally below their projected 80-tonne monthly pace through mid-2026.

China emerged as May's dominant buyer with 15 tonnes acquired, contributing to total non-US purchases of 31 tonnes. Goldman notes funds' net long gold positions have retreated from April's peak, creating "greater structural capacity" for continued central bank and ETF accumulation. Analysts reaffirm their projection of $3,700/oz by late 2025 and $4,000/oz by mid-2026, maintaining their "long gold" investment stance.

Gold's trajectory sparks market divergence following its first-half surge of nearly 26%, which peaked at $4,500/oz in April before entering consolidation. While Goldman plays the role of gold bull - citing central bank demand, recession risks, and dollar credibility concerns - Citigroup presents a bearish counter-narrative. Citigroup analyst Maximilian Layton anticipates gold shortages peaking in Q3 2025, with prices potentially sliding to $2,500-$2,700/oz by Q2 2026 amid dwindling investment interest.

Spot gold traded at $3,371/oz at press time, marking a 0.46% daily gain and 0.42% weekly advance after alternating between losses and rebounds. Kitco's latest survey reveals neutral sentiment among Wall Street analysts: 47% predict price gains this week, 7% forecast declines, and 47% expect sideways movement.

Market observers offer contrasting perspectives: - Marc Chandler of Bannockburn Global Forex noted US tariffs aided gold's recovery but questioned whether consolidation below the $3,500 historic peak has concluded. - FxPro's Alex Kuptsikevich highlighted central bank demand and geopolitical uncertainty as supports, while cautioning that gold's rapid 2022-2025 advance signals overbought conditions that may limit breakout potential. - CPM Group analysts observed markets await clearer political and economic direction, with US policy volatility encouraging financial players toward wait-and-see stances.