Gold Price Target Rises to $4,900 as Goldman Sachs Warns of Volatility

Goldman Sachs has raised its gold price target to $4,900 per ounce by the end of 2026.

The investment bank believes that Western investor demand and central banks' continued purchases will drive prices close to key strike levels, triggering hedging actions from traders and accelerating the rally.

However, Goldman Sachs warns that the current gold uptrend faces increased bidirectional volatility risks, making price movements susceptible to technical and capital flow factors.

If gold prices correct, institutions warn that traders may swiftly unwind previously established hedges, adding extra selling pressure and amplifying downward price movements.