Goldman Sachs says gold remains its top long trade as rally accelerates.
Goldman Sachs reiterated its bullish stance on gold, calling it the bank’s “favorite long commodity” after prices surged to fresh records. The precious metal has broken out of its Q2 trading range of $3,200–$3,450 an ounce, rallying 14% since late August to around $3,865/oz — a gain of 47% so far this year.
Analysts said the rally has been driven mainly by three conviction buyers in their gold price framework: a sharp rise in Western ETF holdings, renewed central bank demand after the summer lull, and, to a lesser extent, stronger speculative positioning.
Goldman sees upside risks building to its existing forecasts of $4,000/oz by mid-2026 and $4,300/oz by December 2026. The bank noted that speculative flows have not been the key driver of the recent rally, accounting for only about one percentage point of the 14% move since Aug. 26, suggesting more durable support from ETF and central bank demand.
