Central Banks Continue Buying Gold, Goldman Sachs Predicts Prices Will Reach This High!
Goldman Sachs predicts that central banks in various countries will again buy large amounts of gold in November, continuing the trend of massive purchases over the past few years. This move is being taken to diversify foreign exchange reserves while protecting the economy from geopolitical risks and financial instability.
In a recent report quoted from Trading View, Goldman Sachs estimates gold purchases will reach 64 tons in September, a significant increase from 21 tons in August. This strong buying trend is expected to continue through the end of the year.
Goldman also reiterated its prediction that gold prices could potentially reach US$4,900 per troy ounce by the end of 2026, especially if retail and institutional investors continue to diversify their portfolios into this hedge asset.
On Monday (November 17, 2025), gold prices fell 0.97% to US$4,039.82 per troy ounce. So far this year, gold prices have surged 55%, driven by global economic concerns, geopolitical turmoil, an influx of funds into gold-backed ETFs, and expectations of further interest rate cuts by the Fed.
Meanwhile, the World Gold Council reports that 95% of central banks anticipate global reserves will continue to rise, with 43% planning to increase their own gold holdings next year.
Previously, JP Morgan predicted that gold prices would peak at US$5,055 per troy ounce in the last quarter of 2026. Morgan Stanley projected gold prices would reach US$4,400 per troy ounce by the end of 2026.
Sprott Asset Management, in its analysis report on precious metals commodities, revealed that the bullish or optimistic projection for gold prices is driven by a shift in investor interest to safe-haven assets to maintain purchasing power and hedge against systemic and geopolitical risks.
The firm revealed that developed countries are entering a period of fiscal dominance, where fiscal priorities shape monetary policy, driving greater allocation to tangible stores of value.
Source: Ipotnews
