A recent 6% pullback in gold prices has not deterred Goldman Sachs, which maintains its bullish $4,900 per ounce forecast for the end of 2026.
The precious metal saw a significant selloff on Tuesday, calling its recent rally into question. After surging to record highs above $4,300, the 6% drop brought gold down to trade around the $4,100 level. However, Goldman Sachs views this as a “temporary dip” rather than a fundamental change in the metal’s bullish trajectory.
The firm’s analyst, Lina Thomas, stated on Wednesday that the long-term outlook remains strong, reiterating the $4,900 per ounce target. She explained this forecast is supported by “persistent demand from central banks” and the expectation of “a new wave of investment inflows” once the Federal Reserve begins cutting interest rates.
Thomas added that feedback from clients and recent ETF activity suggest a growing intention from major capital allocators—including sovereign wealth funds, central banks, and pension funds—to increase their gold allocations for strategic portfolio diversification.
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Goldman Sachs’ strong reaffirmation is likely to act as a stabilizing force, encouraging investors to “buy the dip” rather than panic-sell after the recent 6% drop.
- This bullish signal from a major institution can provide a psychological floor for the gold price, reinforcing market confidence in the metal’s long-term uptrend. It may also accelerate the allocation shifts Goldman noted, prompting other large-scale investors, like pension and sovereign wealth funds, to view the current $4,100 level as a strategic entry point.
This article was written by Eamonn Sheridan at investinglive.com.