Headline: Central Banks Step Up Gold Buying as Goldman Sachs Targets $4,900/oz by 2026
Gold’s bull run is finding fresh support from central banks. Accelerated buying in recent months has reinforced a powerful official-sector bid that continues to underpin the gold market’s upward momentum.
Goldman Sachs reports a notable pickup in central bank gold purchases in November, following an estimated 64 tonnes of demand in September. The renewed accumulation extends a multi-year shift toward reserve diversification as policymakers seek to reduce reliance on the U.S. dollar and hedge against geopolitical risks, fiscal uncertainty, and persistent inflation pressures. The bank views this official-sector demand as one of the most dependable structural flows in the bullion market.
Looking ahead, Goldman maintains a bullish long-term outlook, projecting spot gold to reach $4,900 per ounce by the end of 2026. The forecast rests on three pillars: continued reserve diversification by central banks, a revival in gold ETF inflows as interest-rate expectations ease, and solid physical demand from Asia. While short-term price swings may be driven by macro data, the bank expects steady central-bank buying and tightening supply conditions to dominate the trajectory of the gold price.
Key Points: – Central banks accelerated gold purchases in November, sustaining a strong official-sector bid. – Goldman Sachs estimates around 64 tonnes of central bank demand occurred in September. – Reserve diversification, geopolitical tensions, and inflation concerns are driving continued buying. – The bank’s long-term forecast puts spot gold at $4,900/oz by end-2026. – Expected drivers include softer rate expectations, increased ETF inflows, and robust Asian physical demand. – Structural official-sector demand and constrained supply may outweigh short-term market volatility.
