Goldman Sachs quietly revamps gold price target for 2026

Core Viewpoint - Goldman Sachs has forecasted that gold prices will rise to approximately $4,900 per ounce by the end of 2026, indicating a 13% increase from current spot prices of $4,323.71 per ounce [2]. Group 1: Central Bank Demand - Central banks have transitioned from occasional gold buyers during crises to consistent and strategic purchasers as part of their long-term reserve strategies [5][6]. - In Q1 2025, central banks acquired a net total of 244 tonnes of gold, followed by 166 tonnes in Q2 and a significant increase to 220 tonnes in Q3 [7]. - In October 2025 alone, central banks recorded 53 tonnes of net gold buying [8]. Group 2: Interest Rates Impact - Falling interest rates are reshaping investor perceptions of gold, which traditionally struggles when yields are high due to its lack of income generation [9]. - The recent Federal Reserve rate cut on December 10, 2025, lowered the target range to 3.50% to 3.75%, further supporting gold's appeal as a store of value [10].