Goldman's bullish stance on gold persists, with China bolstering demand prospects

- Goldman Sachs maintains a bullish stance on gold, attributing record-high prices to potential Fed rate cuts and China's robust demand despite rising US interest rates.

- Structural changes in China are seen as creating a steadfast bull market for gold, with lower rates and economic uncertainties driving demand, offsetting a slowdown in jewelry purchases.

- China's central bank's substantial gold purchases, driven by concerns over US financial sanctions and sovereign debt sustainability, alongside a threefold increase in central bank gold acquisitions, reinforce an optimistic long-term view on gold.

Despite the traditional inverse relationship between gold prices and US interest rates, structural changes in China continue to support a bullish outlook, with central bank purchases and a forecast of $2,700 per ounce for 2025 adding to the positive sentiment. The anticipated return of Western capital to the gold market further strengthens the long-term prospects for gold, despite potential short-term fluctuations in the Chinese market.