Goldman Sachs has raised its forecast for global gold prices by around 10% by the end of the current year, compared with its previous estimates, citing continued growth in purchases by central banks in emerging markets and a broader expansion of gold investment diversification from the official sector into the private sector.
In a recent note, Goldman Sachs analysts forecast that gold prices will rise to $5,400 per ounce by the end of 2026, up from their previous estimate of $4,900 issued last October.
Gold reached an unprecedented peak during yesterday’s trading session at $4,887.82 per ounce. Since the beginning of this year, the precious metal has surged by more than 11%, extending a powerful rally after gaining 64% last year.
According to the U.S. investment bank, private-sector investors are expected to increase their purchases of gold this year and maintain their positions through year-end, as part of efforts to diversify investments and hedge against rising global economic policy risks. These factors prompted Goldman Sachs to sharply raise its gold price outlook for this year.
Goldman Sachs analysts expect average monthly gold purchases by central banks this year to reach around 60 tonnes, with emerging-market central banks likely to continue diversifying their reserves toward gold rather than traditional currencies.
Last week, Commerzbank analysts raised their forecast for gold prices by the end of 2026 to $4,900 per ounce, amid rising global demand for safe-haven assets.
Meanwhile, HSBC said earlier this month that gold prices could climb to $5,000 per ounce during the first half of 2026, driven by escalating geopolitical risks and persistently high global debt levels.
However, HSBC lowered its forecast for the average gold price this year to $4,587 per ounce, down from its previous estimate of $4,600, citing the risk of a price correction following gold’s rise to new record highs.
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