(Bloomberg) -- Goldman Sachs says that a strategic buying opportunity may open up in gold should prices drop substantially below $1,250 an ounce, with bullion offering investors a way to protect themselves against risks to global growth and limits to central banks' effectiveness.

While the decline over the past month, which has accelerated this week, has been in line with the bank's bearish outlook, there could be a case for purchases if the sell-off deepens, according to analysts including Jeffrey Currie and Max Layton. On Friday, bullion was less than $5 above the $1,250 level and headed for the biggest weekly slump in more than three years.

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