Last year, gold (XAUUSD) posted its best performance since 1979. The momentum has only continued into 2026, as the precious metal is set to gain more than 7% this week, marking its best weekly gain since March 2020.
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Gold tends to rise during periods of geopolitical uncertainty and received a boost after President Trump threatened tariffs on eight European countries until the U.S. reaches a deal for Greenland. Trump later backed off on the threat while adding that he would soon impose a 25% secondary tariff on any country doing business with Iran.
Goldman Lifts December Gold Forecast to $5,400
Gold surpassed $4,900 per troy ounce earlier this week and is currently hovering below $5,000. By the end of the year, it could reach $5,400, according to a new estimate from Goldman Sachs (GS). The bank cited demand from the private sector driven by “global policy uncertainty.”
Goldman added that most private sector purchases of gold will come through exchange-traded funds (ETFs). Lower interest rates could also benefit gold because it doesn’t pay out interest. In other words, the opportunity cost of holding gold compared to interest-bearing assets goes down with lower rates.