Wall Street investment bank Goldman Sachs (GS) sees the rally in gold continuing in the new year and forecasts the price of the precious metal will increase another 14% to $4,900 an ounce by December 2026.
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The price target of $4,900 is Goldman’s base case for gold, said the bank in a note to clients. Overall, the investment bank sees upside risks to its outlook for gold due to the metal’s continued role as a safe haven asset and the potential broadening of its appeal to private investors.
Goldman Sachs’ commodities team adds that it expects central banks around the world to continue buying the precious metal over the next 12 months, as well as price support from continued U.S. Federal Reserve interest rate cuts. The bank recommends investors have long exposure to the yellow metal.
Gold’s Big Run
Gold is currently trading at $4,363.30 per ounce. The precious metal that is used to make jewelry has seen its price rise 63% this year, one of its best annual performances ever. Catalysts that have sent gold higher in 2025 include geopolitical tensions, central bank purchases, and a weak U.S. dollar.
Several other Wall Street banks and brokerages also expect gold’s price to continue rising throughout 2026 as geopolitical and macroeconomic uncertainty continues and interest rate cuts continue. Lower interest rates reduce the opportunity cost of owning gold, which is a non-yielding asset.
Is The SPDR Gold Shares ETF a Buy?
Most analysts don’t rate the SPDR Gold Shares (GLD) exchange-traded fund (ETF). So instead, we’ll look at its year-to-date performance. As one can see below, the GLD ETF has risen 63.50% this year, mirroring the price of the precious metal that it tracks.
