Gold hits another record in relentless rally; Goldman lifts 2026 target to $4,900/oz

Gold prices scaled another record high on Tuesday, approaching the $4,000 per ounce mark, driven by continued safe-haven demand amid fears of a prolonged shutdown of the U.S. government and other geopolitical uncertainty. 

Gold climbed 1.5% to $3,945/oz at the start of the week, extending a seven-week rally and bringing year-to-date gains to nearly 50%. On Tuesday, spot gold (XAUUSD:CUR) was little changed around $3,961.12 an ounce, after hitting an all-time high of $3,977.19 earlier in the session.

Goldman Sachs raised on Monday its December 2026 gold price forecast to $4,900 per ounce from $4,300, citing strong Western exchange-traded fund (ETF) inflows and likely central bank buying.

"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, according to reports.

Western ETF holdings are expected to rise as the U.S. Federal Reserve is seen lowering the funds rate by 100 basis points by mid-2026, analysts said.

Otherwise, a persistent feeling of market uncertainty, particularly concerning worldwide sovereign debt, adds to the current precious metals premium.