On Monday, gold futures surpassed $4,000 per troy ounce for the first time ever as the precious metal continues its historic year. More upside is on the way, according to Goldman Sachs.
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The bank raised its gold 2026 price target to $4,900 from $4,300, citing strong ETF flows and demand from central banks. The new price target implies upside of 22.5% from current levels.
“We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate,” Goldman said.
Bank of America Signals Caution for Gold
On the other hand, Bank of America points out that the precious metal could face “exhaustion” around the $4,000 price level.
For example, gold has risen for seven consecutive weeks. In this scenario, gold has historically traded lower 11 of 11 times four weeks later and 10 of 11 times five weeks later. In addition, gold’s 14-day relative strength index (RSI) has remained in overbought territory for a month.
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