Goldman Sachs has revised its forecast for gold prices, predicting the precious metal will reach RM663,450 (US$157,000) per kilogram by December 2026 — up from its previous target of RM584,550 (US$138,000) per kilogram. The bank attributes the increase to strong inflows into Western exchange-traded funds (ETFs) and continued buying by central banks.
The investment giant said risks remain tilted to the upside, as private sector diversification into gold could push ETF holdings higher than expected.
As of early Tuesday (Oct 7), spot gold was trading around RM535,344 (US$126,990) per kilogram, after hitting a new record of RM537,832 (US$127,810) earlier in the day.
Gold prices have soared 51% this year, driven by central bank accumulation, a weaker US dollar, and increased demand from retail investors seeking a safe haven amid global trade and geopolitical tensions.
Goldman Sachs expects central bank gold purchases to average 80 tonnes in 2025 and 70 tonnes in 2026, noting that emerging-market central banks are likely to continue diversifying their reserves into gold.
Meanwhile, Western ETF holdings are expected to climb further as the US Federal Reserve is projected to cut interest rates by 100 basis points by mid-2026.
Goldman added that speculative trading has remained stable, and the surge in ETF holdings recorded in September now aligns with its rate-based projections — indicating that the rally is driven by fundamentals, not speculation.
