Goldman Sachs quietly revamps gold price target for 2026
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Goldman Sachs typically doesn’t make bold calls lightly, but its latest gold price target forecast should make investors stop and take notice.The bank is now expecting gold prices to jump to roughly $4,900 per ounce by the end of 2026, carrying on a historic run. For perspective, that represents a 13% increase with spot gold prices trading at $4,323.71 per ounce at about 3 a.m. EST on Friday, Dec. 19.Goldman points to a fundamental shift that’s driving the global economy.It argues that central banks aren’t simply dabbling in gold anymore, while falling interest rates continue to impact investor preferences. In other words, the sharp bump in gold prices might not be a short-term reaction, but more of a longer-term shift in how money is being positioned.Also, though the shiny yellow metal is hogging all the spotlight, Goldman’s copper outlook isn’t just a precious-metals story but a broader signal about where demand, risk, and policy are moving next. Gold’s rally keeps accelerating as Wall Street resets expectations for where prices go next.Photo by picture alliance on Getty Images Goldman thinks gold’s rally still has room to runGoldman’s confidence in gold has to do with a couple of forces that are reinforcing each other.Central banks have effectively become a major and reliable source of demand, with institutions no longer stepping in only during moments of crisis. They continue to load up on gold steadily and deliberately as part of their potent long-term reserve strategy. More Experts:Longtime fund manager sends blunt message on P/E ratiosJim Cramer issues blunt 5-word verdict on Nvidia stockWhat the White House decision really means for NvidiaMichael Burry shares bold predictions for OpenAI, PalantirPer the World Gold Council (WGC) in Q1 2025, they scooped up a net 244 tonnes of gold, and even with a relatively sluggish Q2 (166 tonnes), buying picked up meaningfully in Q3 to 220 tonnes.Also, the WGC tracked 53 tonnes of net gold buying by the central bank in October of this year alone.At the same time, falling interest rates are also changing things up on how investors think about gold’s biggest drawback. Gold doesn’t generate income, so naturally it tends to struggle when yields are high. However, once the interest rates come down, the disadvantage fades, and gold’s lack of yield becomes easier to accept, along with it being a store of value. Related: Morgan Stanley sets jaw-dropping Micron price target after eventFor perspective, the Fed’s most recent rate cut came on December 10, 2025, when it lowered the target range to 3.50% to 3.75%. Also, it’s important to note that the next scheduled FOMC meeting is on January 27-28, 2026. On the leadership front, Reuters reports that Jerome Powell’s term as Fed chair ends in May 2026, with the White House expected to name a successor early in 2026.Future Fed chairs are expected to be aligned with a growth-friendly policy.A year of record highs, built in wavesGold’s 2025 was impressive, to say the least.The gleaming metal’s year started off quietly, with prices hovering at around $2,600 an ounce, and it started to build momentum as investors reacted to trade risks, geopolitics, and a weakening dollar.Spring brought about the real acceleration. Related: Top-rated analyst drops curt 8-word take on Tesla stockAs U.S.-China tensions flared, Reuters reported gold touching all-time highs at around $3,171 on April 10, before surging past $3,500 later in April on the back of a global flight toward safety.The rally cooled off for a short period, but by the end of September, gold prices continued their climb, approaching $3,827 an ounce.The final leg came in October, as gold surged past previous records. Gold currently sits in the $4,300 to $4,500 range, up almost 60% for the year (its biggest annual increase since the 1979 oil crisis, according to Reuters), while the World Gold Council counted 50-plus all-time highs.That’s perhaps why legendary investor and hedge fund pioneer Ray Dalio commented back in September.Big banks raise the bar for where gold could land nextJ.P. Morgan expects gold to average near $5,055 an ounce by Q4 2026, spearheaded by robust central-bank buying and resilient investor demand. Bank of America bumped its 2026 forecast to $5,000, cautioning that sharp 2025 gains may still lead to short-term pullbacks.
Morgan Stanley Research increased its 2026 target to $4,400, signaling continued upside through the end of the year. Deutsche Bank sees a $4,450 average in 2026, with prices ranging from $3,950 to $4,950 contingent on policy and capital flows. Related: Bank of America sets AI stocks to buy list for 2026