XAU/USD: the price of gold should continue to drop in the short term, offering a buy opportunity (Goldman Sachs)

According to Goldman Sachs, the price of gold is expected to decline in the markets in the coming months, before rising later on.

"Following the first round of the presidential election on Sunday, gold lost $12, reaching $1,276. We continue to believe that gold will remain under pressure in the short term, and our 3-month target remains at $1,200.

This week should continue to remain volatile, but we could have a further bearish wave following the unveiling of Trump's tax reforms on 26 May (or soon after), plus our US economists are not anticipating a government shutdown on Friday.

The main risk to this short-term bearish view would be an escalation of military tensions in North Korea.

In the medium term, this early pullback would be a buying opportunity as our 12-month target remains at $1,250."