Major banks, including ANZ and Goldman Sachs, maintain a positive long-term outlook for gold. In their assessment, the current correction is temporary.

Since the onset of the conflict in the Middle East, the price of gold has declined by nearly 10% from its January high of over $5,500 per ounce. Rising bond yields and a strengthening dollar have exerted downward pressure.

Nevertheless, fundamental factors remain strong: sustained demand from central banks, geopolitical uncertainty, and expectations of interest rate cuts. ANZ forecasts a price increase to $5,800 per ounce by the end of 2026.

In the short term, downside risks persist; however, a prolonged conflict could accelerate reserve diversification and bolster demand for the precious metal.