Goldman Sachs raises gold price forecast to $4,900.

Goldman Sachs' New Gold Forecast

Goldman Sachs, in a new report released on October 16, 2023, raised its gold price forecast for December 2026 from 4,300 dollars to 4,900 dollars.

Strong ETF Inflows and Central Bank Purchases

The financial services giant highlighted the increase in investment fund (ETF) inflows in European stock markets and potential purchasing activities by central banks as reasons behind this forecast.

Upside Risks

Goldman Sachs analysts noted, "We still observe that the risks to our developed gold price forecast are clearly skewed to the upside. ETF assets could surpass our interest rate-based forecast," drawing attention to the seriousness of the situation.

Expectations for Central Bank Gold Purchases

Goldman, maintaining its economic expectations, anticipates that central banks will purchase an average of 80 tons of gold in 2025 and 70 tons in 2026. This situation could increase demand for gold in the markets, further pushing prices higher.