Read Business Desk. Goldman Sachs has once again predicted a big rise in gold prices. According to the Global Brokerage House, the gold price in the international market may reach $ 4,900 per ounce by the end of 2026.
This indicates a potential upside of about 8% from current levels. However, the price of gold will depend on many global economic and geopolitical conditions.
Gold rate now around $4,504
The price of gold in the international market is around $ 4,504.10 an ounce after the recent fall. There was pressure in the gold price this week, but market experts believe that the purchase and investment demand of central banks can support gold in the coming time.
Big reason for increasing gold buying by Central Banks
Continuous gold buying by central banks around the world is being considered as an important reason behind the rise in gold prices. According to estimates given by Goldman Sachs Research, before 2022, central banks used to buy an average of about 17 tonnes of gold every month.
Now this purchase has increased to about 50 tonnes per month. Central banks of many countries including China are emphasizing on increasing their gold reserves. Continuous purchases by central banks are strengthening the demand for gold in the market.
Eye on Fed Rate and ETF Demand
According to Goldman Sachs estimates, if the US Federal Reserve does not increase interest rates and demand from investors in Gold ETFs increases, the price of gold could reach $ 4,900 an ounce.
Expectations of a decrease or softening of interest rates are generally considered positive for gold, as it may increase the attractiveness of the non-interest bearing asset.
Why did the gold price fall this week?
Despite bullish predictions, there was a big fall in gold prices in the commodity market this week. One of the main reasons for this was the market's concern regarding US monetary policy and interest rates. The Federal Reserve's stance on inflation data can play an important role in deciding the future direction.
Geopolitical Tension is also supporting Gold
Geopolitical Tension also has an impact on gold prices. There remains uncertainty in the global market due to tensions in the Middle East and fluctuations in crude oil prices. If geopolitical tensions increase, investors may turn to gold as a safe investment.
Robert Kiyosaki has also predicted a rise
Apart from Goldman Sachs, famous investor and author of Rich Dad Poor Dad, Robert Kiyosaki has also expressed the possibility of a rise in gold and silver. However, estimates from different experts may differ and these are not fixed future prices but estimates based on market conditions.
Can gold reach $4,900 in 2026?
Goldman Sachs' estimate of $4,900 mainly depends on the stance of central banks' Gold Buying, ETF Demand and US interest rates. If the purchases by central banks continue.
If ETF investment increases and the Federal Reserve's stance remains soft, then there may be scope for further gains in gold. However, due to the strength of the dollar, inflation, interest rates and changes in global developments, the trend of gold price may reverse.
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