Quick overview

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According to a Goldman Sachs survey, many investors believe that gold will reach a new all-time high of $5,000 by the end of 2026.

The bullion metal has increased by 58.6 percent so far this year, and on October 8, it broke through the historic $4,000 mark for the first time. In a survey of over 900 institutional investor clients on Goldman Sachs’ Marquee platform, 36 percent believe that gold will continue to rise and surpass $5,000 per troy ounce by the end of next year.

An additional 33% of respondents to the November survey predict that the commodity will hit between $4,500 and $5,000. Goldman Sachs reports that more than 70% of institutional investors expect gold prices to rise in the upcoming year.

On the other hand, slightly more than 5% of those surveyed believe that prices will decline to between $3,500 and $4,000 in the upcoming year. According to the survey, 27% of participants cited fiscal concerns as the primary cause of gold’s price increase, while 38% cited central bank purchases.

This year, a wide range of investors, including hedge funds and retail buyers, have turned to the commodity, which is typically viewed as a safe-haven asset during turbulent times, as a hedge against inflation risk, geopolitical unrest, and a declining dollar.  Central banks have also invested in the precious metal because of gold’s high liquidity, low default risk, and generally neutral status as a reserve asset.