Goldman Sachs Maintains Bullish Gold Outlook, Sees Upside Risk to $4,900 Forecast
Goldman Sachs reaffirmed its bullish outlook on gold, saying it expects prices to trend higher in the coming years despite a recent pullback. The bank cited sustained central bank demand and rising investor interest in gold as a long-term portfolio hedge.
In a note from analysts Lina Thomas and Daan Struyven, the bank highlighted that gold prices surged 26% since September, reaching a record $4,378 per ounce, before easing 6% to around $4,100 per ounce earlier this week.
Correction Seen as Temporary
Goldman Sachs attributed the short-term decline to market corrections following the rally, stating that the move “likely contributed to the selloff.” However, the analysts emphasized that “structural buying will continue,” adding that they still see upside risk to their $4,900 end-2026 forecast.
Central Banks and Investors Drive Demand
According to the bank, steady inflows from central banks and long-term investors remain a key support for gold. The analysts noted that central bank purchases likely increased seasonally in recent months, while expected Fed rate cuts and diversification strategies have also fueled ETF inflows and physical buying by wealthy investors.
While the pullback in gold partly reflected “spillover weakness from silver,” which has dropped about 11% since last Friday, Goldman Sachs said the overall demand backdrop remains strong.
Gold Could See Major Gains by 2026
Goldman reiterated its $4,900 per ounce target by the end of 2026, driven by continued monetary easing, institutional accumulation, and renewed investor confidence in gold as a hedge against inflation and market volatility.
The report also noted that many long-term capital allocators, including sovereign wealth funds, central banks, pension funds, and asset managers, are planning to increase their exposure to gold. Even small reallocations of capital, the bank said, could significantly lift prices given the limited size of the gold market.
