Gold Prices Predicted to Reach $4,900 as Central Banks Diversify Reserves

Gold has had an unusual year so far in 2026, reaching $5,000 per ounce for the first time in January and briefly touching a record high above $5,500 before falling below $4,000 by late June. The metal has since rallied again.

According to Goldman Sachs Research, gold is expected to reach $4,900 per troy ounce by the end of 2026, up from around $4,600 on August 25 after a 15% climb from its mid-July low.

The driver behind this forecast is not speculative positioning but rather central banks diversifying their reserves away from foreign currencies, which analysts describe as a multi-year trend. This trend has led to increased demand for gold, pushing prices higher.