Goldman Sachs Sees Gold Price Soaring to $4,900 Amid Central Bank Demand
Gold prices are expected to reach $4,900 per ounce by year-end 2026, according to Goldman Sachs Research. This forecast is driven by strong demand from central banks seeking to diversify their foreign currency reserves.
The firm notes that central banks have been accumulating gold at a rapid pace, with an average of 50 tonnes purchased per month in 2026, up from just 17 tonnes before 2022. China's central bank was the largest confirmed buyer in June, purchasing 100 tonnes on a three-month seasonally adjusted basis.
Goldman Sachs also highlights the impact of investors using gold derivatives to hedge their portfolios against government policy changes. This increased demand for hedges could amplify price swings and drive gold prices even higher.