Gold Prices Pull Back Amid Bullish Outlook as Institutions Predict Further Gains
International gold prices pulled back slightly on August 25 after touching a three-month high of $4,697 per ounce intraday, but major Wall Street institutions remain broadly bullish on the metal's medium- to long-term outlook.
The current rally is driven primarily by expectations of a weaker dollar and the Federal Reserve's rate-hike pause. Central banks around the world continue to accumulate gold, with the People's Bank of China adding 20 tonnes in July, its largest single-month increase in nearly three years.
Goldman Sachs forecasts gold will reach $4,900 per ounce by end-2026, while Citi has set a one-year target of $5,000, $6,000. Morgan Stanley expects prices could break above $5,000 by 2027.
The bank also warns that the hedging mechanics of gold call options have an amplifying effect in both directions, and near-term technical pullback risks should not be overlooked, with the Jackson Hole symposium flagged as a key variable.