Goldman Sachs, which has maintained a bullish stance on gold, suggests that the precious metal has the potential to rally beyond its existing forecasts. Analysts, including Daan Struyven, noted that surprisingly strong inflows into bullion-backed exchange-traded funds have surpassed the bank’s previous models. They believe that significant diversification into gold by private investors presents a considerable upside risk to their projections. Goldman Sachs had forecast $US4000 per ounce by mid-2026 and $US4300 per ounce by the end of next year.
About a month ago, the bank indicated that gold could approach $US5000 an ounce if inflows were to represent just 1 per cent of the privately owned US Treasury market. This highlights the potential impact of even a small shift in investment allocation towards gold. Gold has already experienced a substantial increase of 12 per cent since August 29, breaking out of a previous trading range.
According to Goldman Sachs analysts, one factor driving the recent surge in gold prices is the potential re-acceleration of gold-buying by central banks, following a seasonal slowdown during the summer months. They also noted that speculative positioning accounts for only a limited portion of the latest breakout.
Gold has emerged as one of the best-performing major commodities recently, with prices soaring nearly 50 per cent this year. This performance surpasses the inflation-adjusted record set in 1980. The surge has been fueled by concerted central-bank buying and the Federal Reserve’s resumption of interest-rate cuts.
