Goldman Sachs: Recent violent fluctuations in gold prices may temporarily slow down central banks' gold-buying demand.

Last month, the price of gold once reached a historical high of $5,500 per ounce. The demand in the investment market was definitely one of the driving factors, but the biggest buyers were undoubtedly the central banks of various countries. In recent years, the purchasing behavior of central banks has directly pushed up the price of gold, but the recent sharp fluctuations in gold prices may temporarily slow down this demand. Commodity analysts Lina Thomas and Daan Struyven from Goldman Sachs pointed out in a report last week, "In discussions with market participants, the managers of central bank reserves are still willing to buy gold to hedge geopolitical and financial risks, but they are more inclined to delay purchases until prices stabilize." Goldman Sachs noted that market volatility is driven by diversification demands from the private sector, most of which are reflected through the amplification of price fluctuations in gold options structures. This volatility makes some emerging market central banks more hesitant to actively buy at current prices, even though they still have a bullish view of the market.