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Goldman Sachs Dramatically Raises Precious Metal Price Target Here S

Bonisiwe Shabane
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goldman sachs dramatically raises precious metal price target here s

Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news... He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339. In a significant bullish declaration for the precious metals market, investment banking giant Goldman Sachs (NYSE: GS) has dramatically raised its gold price forecast, now predicting the yellow metal will hit an astounding $4,900...

This upward revision, announced around October 6-7, 2025, comes as gold has already shattered historical ceilings, with spot prices recently topping the $4,000 per ounce threshold, signaling a robust and potentially sustained rally. The revised outlook from one of Wall Street's most influential firms underscores a growing institutional conviction in gold's enduring appeal as a safe-haven asset and a hedge against economic uncertainties. This move is poised to fuel further investor interest in gold, potentially driving capital into gold-backed instruments and mining equities, while also reflecting broader concerns about inflation, geopolitical stability, and the future trajectory of... Goldman Sachs' (NYSE: GS) decision to elevate its gold price target to $4,900 per ounce by December 2026 marks a substantial increase from its previous forecast of $4,300, representing a 14% jump in its... This revised projection, publicly reported around October 6-7, 2025, was made amidst a "breakneck rally" that saw spot gold touch an intraday high of $3,977.19 per ounce, with gold futures even surpassing the $4,000... This historic surge has pushed gold's year-to-date gains in 2025 to approximately 51%, highlighting the intense upward momentum.

The investment bank attributes its heightened confidence to a confluence of powerful and "sticky" drivers. Analysts, including Lina Thomas and Daan Struyven, point to persistent and robust inflows into Western gold-backed Exchange Traded Funds (ETFs) as a key factor, demonstrating sustained private investor interest. Even more impactful is the relentless buying spree by global central banks, particularly those in emerging markets, which are actively diversifying their reserves away from traditional assets. Goldman Sachs anticipates this central bank demand to remain significant, forecasting an average of 80 metric tons in 2025 and 70 tons in 2026. Another critical pillar supporting Goldman's bullish stance is the anticipation of substantial interest rate cuts by the U.S. Federal Reserve.

The firm projects a 100-basis-point reduction in the federal funds rate by mid-2026. Such a dovish shift in monetary policy would significantly lower real yields, thereby decreasing the opportunity cost of holding non-yielding assets like gold and enhancing its attractiveness to investors. Compounding these factors are ongoing geopolitical uncertainties and a weakening U.S. dollar, both of which traditionally bolster gold's safe-haven appeal. Goldman Sachs is raising its forecast for gold by a whopping 14%. The banking giant believes the precious metal will rally to $4,900 per ounce by December of 2026, up from a prior forecast of $4,300 per ounce, reports Reuters.

The dramatic move in Goldman’s forecast factors in larger than initially-modeled inflows by Western investors into gold exchange-traded funds (ETFs). “We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our... The team of analysts also say there is an increased likelihood of central banks continuing this year’s gold buying spree at an even higher level in 2026. The price of gold is forecast by Goldman Sachs Research to rise 6% through the middle of 2026 (as of September 24), underpinned by fresh demand from key groups of buyers who have contributed... The precious metal has risen more than 40% in 2025 and is on pace for its third-straight year of double-digits gains. The gold price is predicted to rise to $4,000 per troy ounce by the middle of next year (up from $3,772 on September 24), Goldman Sachs Research analyst Lina Thomas writes in the team’s...

Their gold price forecast is driven by strong structural demand from central banks and easing from the US Federal Reserve (which supports ETF demand for gold). Buyers of gold fall into two broad groups, according to Goldman Sachs Research. Conviction buyers tend to purchase the yellow metal consistently, regardless of the price, and based on their view on the economy or to hedge risk. These include central banks, exchange-traded funds, and speculators. Their thesis-driven flows set the price direction. As a rule of thumb, every 100 tonnes of net purchases by these conviction holders corresponds to a 1.7% rise in the gold price.

By contrast, opportunistic buyers such as households in emerging markets step in when they believe the price is right. They may provide a floor under prices on the way down and resistance on the way up. Disclosure: We are reader-supported. If you purchase from a link on our site, we may earn a commission. Learn more Last Updated on: 17th December 2025, 11:46 pm

Gold has already had a historic run, and now the big question is whether 2026 becomes the year gold consolidates above $4,000 or makes a serious push toward $5,000 per ounce. As of writing this article, spot gold was around $4,317/oz (after printing new all-time highs earlier in the year). Multiple major banks and research firms now expect 2026 to be strong, but not necessarily “straight up.” If you want a plain-English walkthrough of how people use physical precious metals (including Gold IRAs) as part of a retirement plan, you can request Noble Gold’s free 2026 Gold & Silver Investing Kit. Affiliate disclosure: If you request the kit through our link, we may earn a commission. This does not affect the price you pay (it’s free).

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