There has been significant volatility in the prices of gold and silver recently. In light of this, an important warning has been issued from abroad, suggesting that the value of the precious metal is expected to continue rising. Goldman Sachs forecasts that the price of gold on the international market could reach the mark of $4900 per ounce.
According to the Goldman Sachs report, although the current price of gold on the international market exceeds $4600 per ounce, it will reach $4900 in the near future. Furthermore, analysts suggest that by the end of 2026, the price of this precious metal could rise to such a high level.
Goldman Sachs indicates that the increase in quotes is driven by several factors. Firstly, central banks worldwide are actively increasing their gold purchases. Secondly, expectations regarding interest rates in the US influence prices. Thirdly, geopolitical uncertainty plays a significant role, and all three elements contribute to accelerating the rise in gold prices.
Goldman Sachs has predicted that in 2026, central banks will purchase an average of 50 tons of gold monthly. This figure is significantly higher than the average level of about 17 tons per month before 2022. After the start of the Russian-Ukrainian conflict, Western countries froze Russia's currency reserves, which prompted central banks to pay more attention to buying gold. For governments seeking to reduce investments in assets that might be restricted or frozen by other states, gold serves as an alternative reserve asset.
According to Goldman, there is an acceleration in purchases by central banks towards 2026. It is projected that in June, the volume of purchases will reach approximately 100 tons per month based on a three-month period, whereas in May, this figure was 66 tons. During this period, the central bank of China became the largest buyer.
Although the main driver of gold price growth is the purchases by central banks, Goldman Sachs also believes that lower expectations regarding US interest rate hikes support this growth. It should be noted that a decrease in interest rates can make assets like gold, which do not yield income, more attractive, which could cause additional demand in the market and potentially push the gold price above the $4900 mark.