Goldman Sachs Sees $4,900 Gold Price Target Amid Central Bank Buying Frenzy

Gold prices are expected to reach $4,900 per troy ounce by year-end, according to Goldman Sachs analysts. This prediction is based on increased demand from central banks, which are buying gold at a rate of 50 tonnes per month. This represents a 300% increase from pre-2022 levels.

The analysts attribute the surge in gold demand to institutional and private investors seeking hedges against geopolitical risk. They also expect the paused Fed rate hikes and fears of fiscal debasement to continue driving buying interest.

Goldman Sachs notes that central banks are diversifying their reserves by purchasing gold, driven by a desire to hedge against financial and geopolitical risks. The analysts expect this trend to continue, with 50 tonnes per month being purchased this year.