Goldman Sachs Stands Firm on $4,900 Gold Price Target Amid Recent Decline
Gold prices have taken a hit recently, falling by 5.5% from their three-month high of $4,697 to around $4,375 on September 1. The drop is attributed to new bets on Federal Reserve rate hikes, which hurt non-yielding assets like gold.
Barchart notes that gold broke below its 200-day moving average near $4,529, marking the first multiple daily closes under this line since early June.
Despite the decline, Goldman Sachs is sticking to its $4,900 price target for the end of 2026, which represents a roughly 10% upside from current levels. Senior commodities analyst Lina Thomas and Global Commodities Research co-head Daan Struyven attribute their view to steady central bank buying.
Central banks are driving long-term gold prices through their continued buying activity. Goldman Sachs expects central banks to purchase an average of 50 tons per month in 2026, up from 17 tons per month before 2022. This increased demand is motivated by a desire to spread out reserves and protect against geopolitical risks.
However, short-term risks remain tied to Federal Reserve moves, with Goldman Sachs previously warning that rate hikes could keep gold near $4,400, testing the asset alongside Bitcoin in the debasement trade.