Gold Is Forecast to Climb as Central Banks Buy the Precious Metal

Goldman Sachs Research forecasts that the price of gold will rise to $4,900 per troy ounce by the end of 2026, compared with $4,600 as of August 25. The metal is expected to rise amid strong demand from central banks seeking to diversify their foreign currency reserves and as markets pare back expectations of US rate hikes in 2026. Investors are using gold derivatives to hedge portfolios against large-scale changes in government policies, which could be making gold more volatile, according to Goldman Sachs Research.