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Goldman Sachs Sees Gold Price Surge to $5,000 as Central Banks Buy

Central banks' gold buying spree pushes prices to new heights. Goldman Sachs predicts a major price surge if investors follow suit.

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1 min read
In the picture I can see the gold coin and there is a photo of a woman on the gold coin.
In the picture I can see the gold coin and there is a photo of a woman on the gold coin.

Goldman Sachs Sees Gold Price Surge to $5,000 as Central Banks Buy

Goldman Sachs predicts further price gains for gold, with the precious metal currently trading at $3,882 per ounce, up 49% this year. Central banks, particularly Poland's, have been actively buying gold, driving its price to new heights.

Goldman Sachs sees potential for gold to reach $5,000 per ounce if just one percent of the privately held US Treasury market shifts into gold. The investment bank forecasts gold prices to hit $4,000 by mid-2026 and $4,300 by the end of next year.

Central banks have been key drivers of gold's recent price increase. The National Bank of Bulgaria bought the second-largest amount of gold in 2025, while China purchased 20.8 tonnes from January to July, placing it in third position. Poland's central bank has been the most aggressive buyer so far this year, acquiring 67.1 tonnes. This increased buying activity, coupled with strong speculative positioning, has pushed gold prices up by 12% since August 29, breaking out of the $3,200 to $3,450 range it maintained earlier in the year.

Gold's performance this year has been remarkable, with a nearly 50% increase pushing it above its inflation-adjusted 1980 peak. This strong performance, coupled with increasing interest from private investors and unusually strong inflows into gold-backed ETFs, poses a 'significant upside risk' to Goldman Sachs' price forecast.

Goldman Sachs anticipates further gains in gold prices, driven by central bank buying, speculative positioning, and strong investor interest. With gold currently at $3,882 per ounce, up 49% this year, and breaking out of its previous price range, the precious metal's outlook remains bullish.

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