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Investing.com -- Goldman Sachs said it remains structurally bullish on gold despite a recent price pullback, citing continued central bank demand and growing investor interest in the metal as a strategic portfolio hedge.
“Gold rose 26% since September through Monday, reaching a record $4,378/toz, before retracing 6% on Tuesday to now $4,100/toz,” analysts Lina Thomas and Daan Struyven wrote in a note.
The bank stated that the correction “likely contributed to the selloff,” but added, “we believe sticky, structural buying will continue further, and still see upside risk to our $4,900 end-2026 forecast.”
Goldman Sachs pointed to sustained inflows from central banks and long-term investors.
“We think sticky inflows continued in September-October as central bank buying likely picked up seasonally,” the note said, adding that “the Fed rate cuts and diversification themes boosted ETF holdings and likely ultra-high-net-worth physical buying.”
The analysts added that while gold’s retracement partly reflected “a spillover from silver, down 11% since Friday,” the underlying demand backdrop remains firm.
“We maintain our $4,900/toz target by end-2026, supported by continued central bank demand and renewed investment inflows as the Fed cuts,” Goldman Sachs wrote.
According to the analysts, the speed of ETF inflows and client feedback suggest that “many long-term capital allocators — including sovereign wealth funds, central banks, pension funds, and both private wealth and asset managers — are planning to increase their exposure to gold.”
They added that even modest portfolio reallocations “could substantially raise prices in the relatively small gold market.”