Since September, the price of gold has increased by about 25%, reaching a record high earlier this week $4,378 per troy ounce. But on Tuesday it happened correction and the price of the metal dropped by over 5%. and remains until Friday morning around $4,100.
This decline was partly the result of profit-taking and a reduction in speculative positions in call options, but Goldman Sachs believes that structural demand remains strongand the prices are still there growth potential above the level forecast by the bank's analysts $4,900 per ounce by the end of 2026
Gold price forecast by Goldman Sachs
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Goldman Sachs
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In its latest report, Goldman Sachs points to continued capital inflows in recent months, resulting from:
- Increased purchases by central bankswhich usually grow seasonally during this time of year
- Fed cuts interest rates and greater interest in gold as a tool portfolio diversification
- Purchases of physical gold by high net worth private investors (UHNW)which are often not visible in data on inflows to ETFs, but are of a long-term nature
Goldman Sachs on the prospects for gold
“The pace of recent inflows into ETFs and customer feedback suggest that many long-term investors – including wealth funds, central banks, pension funds and private wealth and asset managers – are planning to increase their exposure to gold as a strategic means of portfolio diversification. These investors typically operate on a multi-quarter and multi-year cycle, which means there is a risk of growth relative to our forecast” – we read in the Goldman Sachs report.
See also: The Poles stormed for gold. Russian drone attack fueled demand
Analysts point out that “if such private investors began to seek security of value outside the financial system in the face of global macroeconomic uncertainty – including concerns about the fiscal situation – even small shifts from global bond and equity portfolios could significantly increase prices in the relatively small gold market.”
