Goldman Sachs Sees Gold Prices Soaring to $4,900 by Year-End

Gold prices are expected to continue rising in the second half of 2026, according to Goldman Sachs Research. The firm forecasts gold prices could reach as high as US$4,900 per troy ounce by year-end. This projection is supported by increasing gold purchases by central banks and reduced market expectations for Federal Reserve (Fed) interest rate hikes in 2026.

The price of gold has already risen approximately 15% from mid-July lows to around US$4,600 per troy ounce as of August 25. Lina Thomas, Senior Commodities Analyst at Goldman Sachs Research, and Daan Struyven, co-Head of Global Commodities Research, believe that the accumulation of gold by central banks is a structural factor supporting prices in the long term.

Central banks are purchasing an average of 50 tons of gold per month throughout 2026, significantly higher than the average of 17 tons per month before 2022. The Chinese central bank was the largest identifiable buyer in June.

GOLDman Sachs also sees the potential for gold prices to surpass the target of US$4,900 per troy ounce due to low interest rate expectations and geopolitical tensions. However, the firm warns that the increasing use of gold derivatives could make price movements more volatile.