Wild gold forecast from Goldman Sachs

Goldman Sachs, one of the leading financial institutions in the US, has revised its assessment regarding the upward momentum in the gold market. The bank has raised its year-end target for an ounce of gold from the previously announced 4,900 dollars to 5,400 dollars, citing growing global demand and the influence of central banks in the market.

The bank's analysts pointed out that central banks are expected to purchase an average of 60 tons of gold per month throughout 2026. It was emphasized that along with potential interest rate cuts, interest in gold reserves from exchange-traded funds (ETFs) is also expected to revive.

Daan Struyven and his team, who are among the Goldman Sachs analysts, stated, "Central banks are now competing with private sector investors for a limited amount of gold through ETF purchases. Furthermore, it is observed that individual investors are beginning to allocate more space to gold assets in their portfolios."

While the bank notes that the impact of diversification moves in portfolios is becoming more pronounced, it expects the demand for gold to continue in the coming months alongside this trend.

News Source: 12punto