Goldman Sachs Predicts Strong Gold Demand, Sets $4,900 Target

Goldman Sachs has reported a significant increase in gold purchases by central banks in November, indicating a robust and ongoing demand from the official sector. The bank estimates that approximately 64 tonnes of gold demand from central banks occurred in September, with early indicators suggesting that November’s buying may have been equally strong. This trend underlines the pivotal role of official purchases in sustaining the recent bull market for gold.

According to Goldman Sachs, central banks have been diversifying their reserves away from U.S. dollars, reinforcing their strategic holdings due to rising geopolitical tensions, fiscal uncertainty in major economies, and concerns regarding long-term inflation. The bank asserts that this renewed accumulation of gold has become one of the most dependable structural flows in the gold market.

Long-Term Gold Price Outlook

In light of these developments, Goldman Sachs has maintained a bullish long-term price target of $4,900 per ounce for spot gold by the end of 2026. The bank cites several factors driving this optimistic outlook. These include ongoing reserve diversification by central banks, continued inflows into exchange-traded funds (ETFs) as interest rate expectations soften, and strong physical demand, particularly from Asia.

Goldman Sachs emphasizes that any temporary market volatility resulting from macroeconomic data will likely be overshadowed by the consistent buying from central banks and tightening supply conditions. This perspective highlights the increasing reliance on gold as a strategic asset amid prevailing economic uncertainties.

As financial conditions are expected to ease into 2026, the cumulative effect of these trends may further solidify gold’s status as a safe haven investment. With central banks continuing to bolster their holdings, the outlook for gold remains positive, reinforcing its appeal in a complex economic landscape.