Goldman Sachs has revised its gold price forecast, now projecting that it will reach $US5400 per ounce by the end of this year. This is an increase from their previous estimate of $US4900 an ounce. The investment bank cited the materialisation of private sector diversification into gold as a key factor driving this upward revision.
According to Goldman Sachs strategist Daan Struyven, private sector investors are purchasing gold to hedge against global policy risks. Struyven noted in a client note that these diversification buyers are not expected to liquidate their gold holdings in 2026. This sustained demand from the private sector is expected to contribute to the continued rise in gold prices.
The surge in gold prices has accelerated since 2025. While central bank buying fuelled increases in 2023 and 2024, the recent rally is attributed to competition between central banks and private sector investors for limited bullion. On Thursday, gold was trading at approximately $US4783 per ounce, following a record high of $US4888 per ounce on Wednesday.
