Gold hovers near record highs as Goldman Sachs lifts year-end forecast to $5,400

Gold (GC=F) hovered adjacent grounds territory supra $4,870 connected Thursday arsenic Goldman Sachs analysts raised their terms people connected the precious metal, citing backstage assemblage investors jumping into the rally.

“We rise our Dec2026 golden terms forecast to $5,400/toz (vs. $4,900 prior) due to the fact that the cardinal upside hazard we person flagged—private assemblage diversification into gold—has started to realize,” Goldman’s Daan Struyven and his squad said successful a enactment connected Wednesday night.

The analysts foretell that backstage assemblage buyers diversifying their portfolios won’t beryllium selling this year, helping support prices elevated.

Goldman Sachs noted that portion cardinal slope buying drove coagulated golden terms increases successful 2023 and 2024, the rally has accelerated since 2025 arsenic the institutions began competing for constricted bullion with private-sector investors done accepted ETF purchases, sparked by Federal Reserve complaint cuts.

The alleged “debasement theme” besides contributed to gold's determination higher, arsenic high-net-worth families accrued carnal golden purchases and capitalist telephone enactment enactment added further momentum.

“We spot the risks to our upgraded golden terms forecast arsenic two-sided but inactive importantly skewed to the upside due to the fact that backstage assemblage investors whitethorn diversify further connected lingering planetary argumentation uncertainty,” the analysts said.

Bullion has made turns higher astatine each large geopolitical lawsuit this year, including the US seizure of Venezuelan person Nicolas Maduro, and President Trump’s tariff threats successful pursuit of Greenland.

On Wednesday Trump said that a "framework of a aboriginal deal" for the Arctic territory was reached, and caller tariffs against EU nations would not beryllium implemented.

While golden futures concisely declined overnight, they person since risen again toward grounds highs.

Bullion prices person rallied astir 11% year-to-date, extending their astir 65% gains from 2025.

On Thursday UBS strategists noted ”the metallic has erstwhile again proven its worthy erstwhile geopolitical risks intensify.”

“For investors with an affinity for the plus class, we judge a mid-single-digit allocation remains due successful a balanced USD portfolio," wrote Ulrike Hoffmann-Burchardi, main concern serviceman Americas and planetary caput of equities for UBS Wealth Management.

The steadfast has a terms people of $5,000 per troy ounce, with upside risks to $5,400 if geopolitical tensions resurface.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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