Central banks are expected to increase their Gold purchases in 2026, analysts at Goldman Sachs say, supporting a much-needed boost to the precious metal toward the end of the year.
Central bank buying is considered one of the main factors supporting the Gold price, which reached an all-time high of around $5,600 per troy ounce at the end of January.
Source: FXStreetDespite the upbeat forecast, Goldman Sachs was more cautious when analyzing the near-term outlook for the metal.
Some central banks are already stepping up their purchases.
“Our view remains that investment and central bank demand will be supported by ongoing geopolitical risk, with further investment impetus from elevated inflation and persistent high gold prices,” the WGC said.
Central banks are expected to increase their Gold purchases in 2026, analysts at Goldman Sachs say, supporting a much-needed boost to the precious metal toward the end of the year.
Central bank buying is expected to average 60 tonnes a month on average this year, more than the 12-month moving average of 50 tonnes seen in March, analysts Lina Thomas and Daan Struyven said in a note dated May 15, Bloomberg reports.
Central bank buying is considered one of the main factors supporting the Gold price, which reached an all-time high of around $5,600 per troy ounce at the end of January. “There’s a strong underlying interest in Gold, and recent geopolitical developments are likely to reinforce diversification,” the analysts said, citing an in-house survey.
Given the boost from institutional demand, the analysts maintained Gold’s price target by year-end at $5,400, close to its record high. The precious metal currently trades at around $4,500, weighed down by soaring global bond yields as inflation expectations continue to climb.
Gold has been broadly consolidating after March’s sharp sell-off. Source: FXStreet
Despite the upbeat forecast, Goldman Sachs was more cautious when analyzing the near-term outlook for the metal. Gold is “a natural source of cash if private investors face liquidity needs — for example, if equity markets sell off amid higher rates and weaker growth expectations,” the analysts said.
Some central banks are already stepping up their purchases. According to data from the World Gold Council (WGC), the People’s Bank of China (PBoC) has purchased 8 tonnes in April, the highest level since December 2024. Gold now accounts for approximately 9% of China's overall foreign exchange reserves.
In the first quarter, data from the WGC shows that global central banks bought 244 tonnes of Gold, a 3% increase compared with the same period a year earlier, despite a visible uptick in selling activity from certain countries during the quarter.
“Our view remains that investment and central bank demand will be supported by ongoing geopolitical risk, with further investment impetus from elevated inflation and persistent high gold prices,” the WGC said.
