Goldman Sachs has raised its forecast for gold prices at the end of next year, citing strong and sustained demand from both central banks and investors amid a recent surge in bullion prices.
The bank now predicts that gold will reach $4,900 per ounce by December 2026, up from its previous estimate of $4,300 per ounce.
Goldman analysts said the continued inflow of funds into gold — from central banks increasing their reserves and from investors buying gold-backed exchange-traded funds (ETFs) — is “sticky,” suggesting prices could remain elevated for longer than previously expected.
Gold is currently trading at $3,947 per ounce, after touching a record high of $3,977 overnight.
In a new analyst note, Lina Thomas and Daan Struyven outlined the key factors behind their revised forecast:
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Central bank buying is expected to average 80 tonnes in 2025 and 70 tonnes in 2026, as emerging market central banks continue diversifying their reserves into gold — contributing 19 percentage points of the expected 23% price increase by December 2026.
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Western ETF holdings are projected to rise as the Federal Reserve cuts interest rates by 100 basis points in mid-2026, adding a further 5 percentage points to price gains.
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Speculative positioning in gold futures markets is also expected to gradually normalise, supporting continued strength in prices.
