Despite a recent pullback, analysts at %GoldmanSachs (NYSE: $GS) remain bullish on %Gold, forecasting that the precious metal’s price could rise to $3,000 U.S. by year’s end.

Gold’s price hit a record high above $2,400 U.S. in April of this year before pulling back. Currently, gold bullion is trading at $2,337.50 U.S. an ounce.

Analysts at Goldman Sachs see the current dip in gold’s price as temporary and expect the price to be at or above $3,000 U.S. per ounce by year’s end.

Goldman Sachs sees continued tailwinds for gold amid an ongoing flight to safety due to geopolitical risks, continued buying of the commodity by central banks, and rising demand among Asian households.

Gold demand in China is particularly strong, notes Goldman Sachs, with the People's Bank of China (PBOC) increasing its gold reserves for 17 consecutive months.

In March alone, the PBOC added 160,000 ounces of gold to its reserves of the precious metal.

The gold accumulation reflects a broader trend among central banks to diversify their reserves and lessen their reliance on the U.S. dollar, the world’s reserve currency.

Gold’s price has risen in recent days after the U.S. Federal Reserve hinted that interest rate cuts could be on the horizon and ruled out any further rate increases.

Lower interest rates increase gold's appeal as they reduce yields on fixed-income assets such as bonds.

The strategists at Goldman Sachs have maintained their base case projection that gold’s price will rise to $2,700 U.S. per ounce by the end of the year, reflecting a 17% increase.

However, they stress that gold’s price could hit $3,000 U.S. an ounce if current conditions coalesce and intensify in the coming months.

Already in 2024, gold’s price has gained more than 15%, reaching a record high of $2,431.55 U.S. per ounce in April of this year.