Bullion rally extends as investors and central banks boost diversification
Goldman Sachs has raised its end-2026 gold price forecast to $5,400 per ounce, up from $4,900/oz, as strong demand from private investors and sustained buying by emerging-market central banks continue to underpin the metal’s rally.
In a note dated Wednesday, the brokerage said private-sector diversification buyers—who have been accumulating gold as a hedge against global policy uncertainty and geopolitical risks—are unlikely to liquidate their holdings in 2026. This, Goldman said, effectively lifts the base level for prices going into next year.
Spot gold climbed to an intraday peak of $4,887.82 per ounce on Wednesday. The safe-haven metal has gained more than 11 per cent so far in 2026, extending a blistering rally after surging 64 per cent last year, driven by expectations of easier monetary conditions, heightened geopolitical tensions, and persistent central-bank demand.
Goldman also expects official sector buying to remain robust, forecasting central bank purchases to average around 60 tonnes in 2026.
Emerging-market central banks, in particular, are likely to continue diversifying their foreign-exchange reserves away from traditional assets and into gold, the bank said.
The bullish outlook is echoed across Wall Street. Commerzbank last week raised its gold price forecast to $4,900 by the end of this year, citing increased safe-haven demand amid global economic uncertainty. Other major banks have also upgraded their price targets, pointing to declining real interest rates, elevated fiscal risks, and geopolitical instability as key drivers supporting bullion prices.
While analysts differ on the pace of further gains, many expect gold to remain well supported through 2026, with a combination of central bank buying, investor diversification flows, and macroeconomic uncertainty limiting downside risks for the precious metal.
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