Goldman Sachs' global commodities research team stated in their latest precious metals report published on September 18 that despite the Federal Reserve's recent interest rate hike and an anticipated further hike in October, the tightening policy will only slow down gold's short-term upward momentum, not end its long-term bullish trend. Therefore, they firmly maintain their gold price target of $5,400/ounce by the end of 2027. Goldman Sachs revised its forecast for gold's fair value at the end of 2026 from the previous $4,900/ounce down to $4,650/ounce, which is still significantly above the current spot price of approximately $4,350/ounce, and expects it to reach $4,650/ounce by the end of this year.

The report emphasized that the structural gold-buying spree by global central banks and the demand for call options driven by concerns over the fiscal sustainability of G10 countries are building a strong floor for gold prices. Goldman Sachs raised its assumption for central bank demand, projecting an average gold purchase rate of 60 tons/month for 2026-2027 (previously forecasting 50 tons/month for 2026 and 40 tons/month for 2027), far exceeding the historical average of 17 tons/month before 2022. The report also highlighted the risk of mechanical surges due to hedging activities by options market dealers, as well as speculative volatility around the US midterm elections.