Goldman Sachs raised its year-end 2026 gold price forecast to $5,400 per ounce from $4,900 per ounce previously, citing diversification into gold by private sector central banks and developing countries, UNN reports with reference to Reuters.
Details
Spot gold rose to a peak of $4,887.82 per ounce on Wednesday. The metal, considered a safe-haven asset, has risen by more than 11% since the beginning of 2026, continuing a sharp rally that saw it jump 64% last year.
"We assume that private investors buying gold to diversify their reserves, whose purchases hedge global political risks and caused the unexpected increase in our price forecast, will not liquidate their gold holdings in 2026, which will effectively raise the starting point of our price forecast," the note said.
The brokerage also expects average central bank purchases to be 60 tons in 2026, as central banks in developing countries are likely to continue diversifying their reserves into gold.
Addition
Last week, Commerzbank raised its gold price forecast to $4,900 by the end of this year, citing increased demand for safe-haven metals.