Gold Prices Soar as Goldman Sachs Sees Further Gains Ahead

Gold prices have surged nearly 30% in the last year, according to data from TradingView. Despite this significant increase, Goldman Sachs has raised its target for gold, expecting it to rise to $4,900 per troy ounce by the end of 2026.

The firm cites growing demand from central banks as they diversify their reserves and scale back expectations for U.S. rate hikes in 2026 as reasons for this target. Central banks are expected to purchase an average of 50 tonnes of gold per month in 2026, up from an average of 17 tonnes per month before 2022.

Growing demand for gold call options is also a factor, as investors turn to the precious metal instrument to hedge their portfolios against large-scale changes in government policies. This trend may accelerate diversification beyond central banks to private investors.