Goldman Sachs Sees Gold Pause, Not Peak, Ahead of FOMC Meeting

Goldman Sachs' Global Head of Metals Trading Tony Kim says gold's sharp price decline from its peak is merely a pause in a longer bull market. He attributes this to uncertainty over incoming Federal Reserve chair Kevin Warsh's policy tilt and disruptions from the US-Iran conflict.

Kim notes that despite sitting 20% below its January peak, gold's structural drivers remain intact. Central banks continue to accumulate gold at a rate of 1,000-1,100 tonnes annually, roughly double pre-2022 levels.

Kim identifies $4,000 an ounce as a solid floor for scaling into long positions, recommending investors take advantage of volatility between now and the September Federal Reserve meeting.