Gold Rally Fueled by Central Bank Demand, Goldman Sachs Predicts $4,900 by 2026
Gold (XAUUSD) has surged 55% this year, poised for its strongest performance since 1979. Tariffs, geopolitical tensions, ETF inflows, and relentless central bank buying have driven the rally. Central banks acquired 220 tons in Q3—a 28% quarterly increase—bringing year-to-date purchases to 634 tons as of September.
Emerging market central banks have accelerated Gold accumulation fivefold since 2022, a trend Goldman Sachs expects to persist through 2026. "This represents a structural shift in reserve management behavior," analyst Lina Thomas noted. The firm forecasts gold reaching $4,900 per troy ounce within three years, implying 21% upside from current levels.