Gold prices reached a new peak on Wednesday, surpassing $4,000 an ounce for the first time. Investors have increasingly turned to gold as a safe-haven asset amid ongoing global economic and geopolitical uncertainties. The rally was further supported by speculation surrounding potential interest rate cuts in the United States, which tend to make non-yielding assets like gold more attractive.
Analysts are revising their forecasts upward in response to the surge. Goldman Sachs updated its December 2026 gold price target on Monday, increasing it by $600 to $4,900 per ounce. The investment bank cited strong inflows into Western exchange-traded funds (ETFs) and anticipated continued buying from central banks as key drivers for the revised outlook.
The surge in gold prices reflects a broader trend of risk aversion in financial markets, with investors seeking stability in the face of economic headwinds. As uncertainties persist, gold’s traditional role as a store of value is expected to continue supporting its price.
