In a significant revision of its precious metals outlook, Goldman Sachs has elevated its gold price forecast for late 2026 to $5,400 per ounce, representing a substantial $500 increase from its previous projection of $4,900. This bullish adjustment comes as the investment bank observes robust patterns of institutional and central bank diversification into the traditional safe-haven asset.
The current market trajectory supports this optimistic outlook, with spot gold reaching a notable peak of $4,887.82 per ounce mid-week. The precious metal has demonstrated remarkable strength throughout 2026, registering an impressive 11% year-to-date gain that builds upon last year’s extraordinary 64% surge.
Goldman analysts attribute this sustained rally primarily to private sector entities utilizing gold holdings as strategic hedges against global policy uncertainties. In a research note released Wednesday, the brokerage emphasized that these diversification-driven purchases have consistently exceeded price expectations, effectively establishing a higher baseline for future valuations.
Concurrently, the investment bank anticipates renewed interest from Western exchange-traded funds as monetary policy evolves. Goldman projects the U.S. Federal Reserve will implement approximately 50 basis points of interest rate reductions during 2026, potentially enhancing gold’s appeal relative to yield-bearing assets.
Central bank activity remains another critical supportive factor, with emerging market institutions expected to maintain substantial gold acquisitions averaging 60 metric tons throughout 2026. This sustained official sector demand reflects ongoing efforts to diversify reserve portfolios away from traditional fiat currencies.
Despite the overwhelmingly positive outlook, Goldman analysts caution that any substantial reduction in perceived global monetary policy risks could trigger liquidation of policy hedge positions, potentially creating downward pressure on gold valuations.