Top News

Gold prices could be headed for another strong rally, according to a fresh outlook from Goldman Sachs. The global brokerage has revised its gold price forecast upward, citing sustained global demand, strong buying from central banks, and continued interest from long-term investors. This new projection has reignited discussions among investors about how much higher gold prices can go—both globally and in India.

Goldman Sachs Raises Gold Price Target for 2026

In its latest report, Goldman Sachs now expects gold prices to reach $5,400 per ounce by the end of 2026, a sharp upgrade from its earlier estimate of $4,900 per ounce. The revision comes after spot gold recently touched an all-time high of $4,887.82 per ounce, reflecting intense global demand. Although prices saw a mild pullback afterward, gold continues to trade near historic highs, reinforcing the bullish outlook.

According to the brokerage, the strong performance seen early in 2026 is not a temporary spike. Instead, it reflects a broader and more structural shift in how investors and institutions view gold as a long-term store of value.

Why Goldman Sachs Is Bullish on Gold

Goldman Sachs highlights multiple factors supporting higher gold prices:

• Persistent buying by central banks, especially in emerging markets

• Rising allocation from private and institutional investors

• Ongoing geopolitical and policy-related uncertainty, which boosts demand for safe-haven assets

The brokerage believes that diversification trends—where investors reduce reliance on traditional currencies and assets—will remain intact throughout 2026. As a result, large investors are unlikely to exit their gold holdings in a hurry.

How Much More Upside Is Expected in 2026?

From current levels, Goldman Sachs estimates that gold prices still have around 12% upside potential. This suggests that even after touching record highs, gold may not be done yet. The firm expects prices to gradually move higher rather than surge abruptly, supported by steady accumulation rather than speculative buying.

Impact on Gold Prices in India

In India, gold prices have already crossed significant milestones. On the Multi Commodity Exchange (MCX), gold is currently trading close to ₹1.51 lakh per 10 grams. Based on Goldman Sachs’ global projection, analysts estimate that Indian gold prices could rise by nearly 12% during 2026.

If this forecast plays out, gold prices in India could approach ₹1.69 lakh per 10 grams, implying a potential increase of about ₹18,000 per 10 grams from current levels. This has important implications for investors, jewellers, and consumers alike.

Gold’s Performance So Far

Gold has already delivered impressive returns. In 2026 alone, the precious metal has gained over 11%, building on the exceptional rally seen in 2025, when prices surged by nearly 64%. These gains reinforce gold’s long-standing reputation as a hedge against uncertainty and financial market volatility.

Central Bank Demand Remains a Key Driver

One of the strongest pillars of Goldman Sachs’ outlook is central bank buying. The brokerage estimates that central banks could collectively purchase around 60 tonnes of gold on average in 2026. Emerging market economies, in particular, are gradually shifting a larger portion of their foreign exchange reserves into gold to reduce currency risk and dependence on the US dollar.

ETF Flows Could Provide Additional Support

Goldman Sachs also expects renewed interest in gold ETFs, especially in Western markets. This optimism is linked to expectations that the US Federal Reserve may cut interest rates by up to 50 basis points in 2026. Historically, lower interest rates make non-yielding assets like gold more attractive, potentially driving higher ETF inflows.

What Are the Risks to the Gold Outlook?

Despite its optimistic stance, Goldman Sachs has flagged one key risk. If long-term uncertainty around global monetary policy eases faster than expected, gold prices could face pressure. A sudden unwinding of large macro hedges built to protect against policy risks may lead to short-term corrections.

Bottom Line for Investors

Goldman Sachs’ revised forecast suggests that gold remains well-supported by strong fundamentals, even at elevated price levels. While short-term volatility cannot be ruled out, the broader outlook points to continued strength driven by central bank demand, diversification strategies, and supportive global financial conditions.

For investors, the message is clear: gold’s role as a strategic asset remains intact, and any sharp dips may be viewed more as consolidation phases rather than the end of the rally.

Disclaimer: The views and recommendations mentioned above are based on reports and opinions of brokerage firms and experts. Investors are advised to consult certified financial advisors before making any investment decisions.