Goldman Sachs has revised its forecast for gold prices, projecting an increase to $3,700 per ounce by the end of this year and reaching $4,000 by mid-2026. Analysts, including Lina Thomas, attribute this upward adjustment to stronger-than-expected central bank demand and increased ETF inflows driven by rising recession risks. The forecast now anticipates central banks purchasing 80 tons of gold monthly, up from the previous estimate of 70 tons.
Recent pressures in the bond market, coupled with the rise in gold prices, highlight gold's unique advantage as a hedge against economic downturn risks. The increased demand from central banks and the appeal of gold-backed ETFs contribute significantly to this trend.
