Goldman Sachs Sees Gold Floor at $4,000 Amid Central Bank Buying

Goldman Sachs maintains its bullish outlook for gold despite recent price volatility. The investment bank views the current market reaction as an 'elongated pause' rather than a trend reversal, according to Tony Kim, global head of metals trading.

The firm identifies $4,000 per ounce as a structural floor for the precious metal and predicts a year-end 2026 price target of $4,900 per ounce. This optimism is driven by robust central bank accumulation, which has increased from an average of 400 to 500 tonnes annually to 1,000 to 1,100 tonnes since 2022.

This significant shift in central bank buying activity has changed market liquidity, tightening the supply available for other investors and industrial users. Moderate buying interest can now have a more pronounced impact on price movements compared to previous market cycles.