Wall Street investment bank Goldman Sachs (GS) has lifted its price forecast for gold, saying the precious metal is likely to reach $5,400 U.S. an ounce this year.
The new outlook comes with gold’s price already up 11% in 2026 and hitting an all-time high of just under $4,900 U.S. per ounce.
Analysts at Goldman Sachs say the rally in gold is almost certain to continue as geopolitical risks increase its appeal as a safe haven asset.
As such, Goldman Sach has raised its year-end 2026 price forecast for gold by 17%, from $4,900 U.S. an ounce to $5,400 U.S.
The leading Wall Street firm says gold’s appeal to investors is rising as they diversify their portfolios and hedge against ongoing geopolitical risks and market uncertainty.
At the same time, central banks around the world continue their gold buying spree, which has largely driven the price surge in gold from $1,800 U.S. an ounce in January 2023.
Since Russia invaded Ukraine, central banks have increased their annual pace of gold buying from 17 metric tons to 60 tons a year.
Goldman Sachs has steadily increased its target for gold in recent years. Its year-end 2026 price target was $4,300 U.S. an ounce last October.
However, Goldman Sachs’ new outlook for gold remains fairly conservative. Bank of America (BAC) is forecasting that gold’s price will reach $6,000 U.S. an ounce by spring of this year.
GS stock has risen 50% over the last 12 months to trade at $953.01 U.S. per share.
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