Central Banks, Not Fed Rates, Now Drive Gold Prices

Goldman Sachs' bullish gold forecast rests on a structural shift: sovereign buyers from China, Poland, India, and the Gulf are absorbing supply faster than traditional economic forces once did. This breaks the old rule that rising real interest rates kill gold demand. If the central bank bid holds, gold can rally even in a higher-rate environment—a departure that matters for how portfolios respond to Fed policy.