Goldman Sachs Sees $4,900 Gold Price Target for 2026 Amid Central Bank Buying Frenzy

Goldman Sachs predicts that gold prices will reach $4,900 per troy ounce by the end of 2026, up nearly 8% from current levels. This forecast is based on strong demand for gold from central banks seeking to diversify their foreign currency reserves.

The brokerage house points out that central bank buying has increased significantly since 2022, with an average of 50 tonnes purchased per month this year. In June, China's central bank was the largest identifiable buyer in the market, purchasing 100 tonnes on a three-month seasonally adjusted basis.

Goldman Sachs expects this upward trend to continue for the rest of 2026, driven by continued demand from central banks and a potential recovery in private investor ETF demand. However, the analysts also highlight significant upside risk and volatility, citing renewed increases in Fed-hike expectations as a trigger for dealer hedge unwinds.

The forecast is lower than Goldman Sachs' previous estimate in February, but still follows the same metric of relying on central bank buying to drive gold prices.