Goldman Sachs, one of the world's leading investment banks, has raised its gold price forecast for December 2026 to $4,900 per ounce, expecting further inflows into gold ETFs and active purchases by central banks. This was reported by Reuters, writes UNN.
Details
The American financial giant Goldman Sachs revised its previous forecast from $4,300 to $4,900 per ounce of gold by the end of 2026. According to the bank's analysts, the main drivers of future growth will be investment demand in Western exchange-traded funds (ETFs), strategic purchases by central banks, and the expected easing of US monetary policy.
We believe that the risks to our elevated gold price forecast are still skewed to the upside of the net market, as private sector diversification into a relatively small gold market could increase ETF assets above our estimate, which is implied by rates
As of Tuesday, 01:30 GMT, the spot price of gold was trading around $3960 per ounce, after setting a new historical high of $3977.19 the day before.
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Since the beginning of the year, gold has risen in price by 51%, which is associated with active purchases by central banks, growing demand for ETFs, a weakening US dollar, and increased interest from retail investors who view gold as a protective asset during periods of geopolitical instability.
Goldman Sachs forecasts that the average volume of central bank purchases will reach 80 metric tons in 2025 and 70 tons in 2026. Analysts note that developing countries will continue to diversify their foreign exchange reserves, increasing the share of gold.
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In addition, gold ETF assets in the West are expected to increase significantly after a possible 100 basis point reduction in the US Federal Reserve's key interest rate by mid-2026.
Recall
According to fintech expert and co-founder of Concord Fintech Solutions Olena Sosedka, the rising price of gold is a signal for the modern fintech market that although technologies can make finance more convenient, trust is based on values proven over centuries. And geopolitical instability further enhances the importance of gold in the international market.
Wars, trade conflicts, unpredictable decisions of world leaders – all this creates an atmosphere of constant instability, in which gold becomes a universal insurance. Therefore, the jump in the value of gold is not just a financial event, it is a marker of investors' trust in the modern economy
She also added that the rising price of gold only means that investors are preparing for a weakening dollar. A weaker dollar makes gold cheaper for international buyers, creating a powerful incentive for its price to rise.