Goldman Sachs has revised its December 2026 price target for gold upward by $US500, setting it at $US5400 an ounce. The adjustment reflects a notable increase in interest from private investors, according to commodities analyst Daan Struyven. Midday Thursday in New York, spot gold experienced a 1.1 per cent increase, reaching $US4884.65.
Struyven noted that while risks to the upgraded gold price forecast are balanced, they lean towards the upside. This is due to potential further diversification by private sector investors amid lingering global policy uncertainty. Conversely, a significant reduction in perceived risks related to long-term global fiscal or monetary policy could lead to liquidation of macro policy hedges, posing a downside risk.
While central bank acquisitions fuelled substantial gold price increases in 2023 and 2024, the rally has accelerated since 2025. Central banks began competing for limited bullion with private sector investors through traditional ETF purchases driven by Federal Reserve interest rate cuts. Additionally, newer instruments designed to hedge global macro policy risks, such as physical buying by high net worth families and investor call option buying, contributed to this trend.
Goldman’s projected 17 per cent price increase from the January month-to-date average by the end of 2026 accounts for multiple expectations. These include the continued competition between central banks and private investors, and the ongoing use of gold as a hedge against global macro policy risks.
