The situation between the U.S. and Iran escalates, gold prices experience a one-day surge, Gold ETF Huaxia (518850) drops 3%, Goldman Sachs defies the trend and remains bullish

On April 2nd, following Trump’s bold statement that “the United States does not need the Strait of Hormuz,” oil prices surged sharply while gold prices accelerated their decline in the afternoon. COMEX gold futures fell below $4,600, after reaching a one-day high of $4,800 yesterday. As of 14:36, gold ETFs Huaxia (518850) dropped 3.01%, and gold stock ETFs Huaxia (159562) fell 3.06%.

Despite recent declines in gold prices, Goldman Sachs still maintains a bullish outlook on gold and predicts that prices will surge again before the end of 2026. Analysts stated in the report that the medium-term outlook for gold remains solid, with prices potentially reaching $5,400 per ounce, citing ongoing central bank purchases and the expectation that the U.S. will cut interest rates twice more this year as main reasons. They noted that in the short term, gold prices still face “tactical downside risks,” and if energy supply shocks intensify, gold could fall to $3,800 per ounce. However, if the Iran conflict accelerates investors’ shift from “traditional Western assets” to diversification into other assets, there remains significant upside potential for gold prices.

Daily Economic News