Goldman Sachs is raising its forecast for gold by a whopping 14%.
The banking giant believes the precious metal will rally to $4,900 per ounce by December of 2026, up from a prior forecast of $4,300 per ounce, reports Reuters.
The dramatic move in Goldman’s forecast factors in larger than initially-modeled inflows by Western investors into gold exchange-traded funds (ETFs).
“We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate.”
The team of analysts also say there is an increased likelihood of central banks continuing this year’s gold buying spree at an even higher level in 2026.
Goldman predicts that central banks will buy 80 metric tons in gold on average this year and 70 tons in 2026 as they continue to diversify their reserves into gold.
Goldman says that the weakening dollar and retail investors seeking a hedge against rising trade and geopolitical tensions are catalysts for gold’s record-breaking rallies.
Gold has soared more than 55% since the start of the year, and crossed $4,000 per ounce on Tuesday for the first time.
Gold is hovering around $4,055 per ounce at time of writing.
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