Goldman Sachs Quietly Revamps Gold Price Target For 2026

Bonisiwe Shabane

-Dec 27, 2025, 5:00 PM

goldman sachs quietly revamps gold price target for 2026

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. 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. Gold prices experienced a dramatic swing this past week, prompting Goldman Sachs to revisit and reaffirm its bullish outlook for the precious metal heading into 2026. Following a meteoric rise of more than 50% year-to-date to all-time highs near $4,400 per ounce, gold suffered its worst single-day plunge in over a decade, dropping 6% on October 21.

While the metal recovered partially due to strong buying interest, including from retail investors and institutional “gold bugs,” it still ended the week 3.5% lower, raising questions about whether gold's historic rally may be... Goldman Sachs, however, remains unfazed. In a note to clients, Goldman Sachs analysts described this pullback as a “healthy reversal” after an extended rally and reiterated their long-term structural bullish view on gold. Citing powerful undercurrents of demand led by central banks, exchange-traded funds (ETFs), and long-term institutional investors, the bank revised its 2026 gold price target to $5,055 by year-end, with gold forecast to average $4,275... Their Q1 2026 target sits at $4,440 per ounce.“After a period of heavy inflows and extended momentum, a reversal and digestion is healthy for gold and doesn’t change our multi-year structural bullish view,” Goldman... Gold is on track for an exceptional 2025, having risen more than 55% so far, its strongest annual performance since 1979.

Over the last five years, gold's performance reflects a powerful cyclical and structural shift in investor behavior: Analysts polled by Reuters now expect gold to average $3,400 in 2025, rising to $4,275 in 2026, marking the first time forecasts for the yellow metal have exceeded $4,000 across an entire calendar year. 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. In a recent development that comes as a surprise, multinational investment bank and financial services company Goldman Sachs has discreetly overhauled its gold price prediction for 2026. The decision was subtly communicated, drawing the attention of investors towards the inherent value of gold as an essential part of their portfolio. Investors and economists speculate this change is a response to the current market dynamics, world political scene and the rate of inflation. Goldman Sachs’ forecasts are often considered a reliable predictor of future market trends, attracting global attention. Read More

Your email address will not be published. Required fields are marked * Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 💎 Goldman Sachs is forecasting a sustained rally in gold prices, projecting a rise to $2,700 per ounce by the end of 2026, driven primarily by robust central bank demand and persistent geopolitical uncertainty,... This bullish outlook contrasts with the more tempered expectations prevalent earlier in the year, which were largely predicated on the anticipated trajectory of U.S.

interest rates. While the narrative surrounding Federal Reserve policy remains significant, the investment bank now believes that factors beyond traditional macroeconomic indicators are exerting a more profound influence on gold's upward momentum. Central bank purchases, particularly from emerging market nations seeking to diversify reserves away from the U.S. dollar, have consistently exceeded expectations. Data from the World Gold Council reveals that central banks acquired a record 1,037 tonnes of gold in 2022, and this trend continued into 2023, albeit at a slightly slower pace. This sustained demand provides a significant floor for gold prices, mitigating the downward pressure that might otherwise arise from rising real interest rates.

Furthermore, ongoing geopolitical tensions, including the war in Ukraine and escalating tensions in the Middle East, are fueling safe-haven demand, further bolstering gold's appeal as a store of value. The bank also highlights the potential for increased retail investment in gold, particularly in Asia, as economic growth continues and disposable incomes rise. The current spot price of gold is hovering around $2,350 per ounce, reflecting a recent surge driven by weaker-than-expected U.S. inflation data and renewed expectations of Federal Reserve interest rate cuts later this year. This price action has coincided with a slight weakening of the U.S. dollar, which typically moves inversely to gold.

However, it's crucial to acknowledge that the gold market is not without its potential headwinds. A sharp and unexpected strengthening of the U.S. dollar, triggered by a more hawkish stance from the Federal Reserve, could exert significant downward pressure on prices. Similarly, a resolution of geopolitical conflicts, while positive for global stability, could diminish gold's safe-haven appeal. From a regulatory perspective, increased scrutiny of gold-backed cryptocurrency tokens and exchange-traded funds (ETFs) could impact investor sentiment and trading volumes. The Securities and Exchange Commission (SEC) has been actively monitoring the crypto space, and any regulatory clampdown could indirectly affect the gold market.

Beyond the immediate price drivers, longer-term structural factors also support a constructive outlook for gold. The increasing use of gold in technological applications, such as electronics and medical devices, is creating a new source of demand that is less sensitive to traditional macroeconomic cycles. Furthermore, the finite supply of gold, coupled with the increasing difficulty and cost of mining new deposits, suggests that supply constraints will continue to support prices in the long run. The environmental and social governance (ESG) considerations are also playing an increasing role in the mining sector, potentially leading to higher production costs and further limiting supply. Investors should carefully consider these multifaceted factors when assessing the potential for gold to appreciate further in the coming years. While Goldman Sachs' $2,700 target represents a significant upside, the actual trajectory of gold prices will ultimately depend on the interplay of a complex web of economic, geopolitical, and regulatory forces.

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.

Goldman Sachs Quietly Revamps Gold Price Target For 2026

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