Goldman Sachs has indicated that gold prices could exceed $4,000 per troy ounce by mid-2026, particularly if private investors significantly increase their allocations to the metal. Spot gold reached a record high of $3,578.50 per ounce recently, buoyed by expectations of a U.S. Federal Reserve interest rate cut and ongoing global uncertainties that have bolstered safe-haven demand. In a note released on Wednesday, Goldman Sachs reaffirmed its strong conviction in gold as a long-term investment.
The firm projects that gold will hit $3,700 by the end of 2025 and $4,000 by mid-2026, driven by robust central bank purchases. However, this forecast does not account for a substantial shift of private investment away from U.S. dollar assets towards gold, which could push prices as high as $4,500 per ounce. Additionally, concerns over the independence of the Federal Reserve, particularly with former President Trump’s attempts to influence its decisions, could lead to higher inflation and a decline in the dollar’s reserve status, further benefiting gold.
Goldman Sachs estimates that if just 1% of private investments in U.S. Treasuries were redirected to gold, prices could climb to nearly $5,000 per troy ounce.