(Reuters) -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.

Spot gold was trading around $3,960 per ounce, as of 0130 GMT on Tuesday, after hitting a fresh high of $3,977.19 earlier in the day.

Gold has climbed 51% so far this year on strong central bank buying, increased demand for gold-backed ETFs, a weaker dollar and growing interest from retail investors seeking a hedge against rising trade and geopolitical

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