Gold has surged this year, and according to a Goldman Sachs survey, many investors believe the precious metal will reach a new all time high of $5,000 by the end of 2026.
The price of gold has increased 58.6% so far this year, and on October 8 it burst above the historic $4,000 threshold for the first time.
In a survey of over 900 institutional investor clients on Goldman Sachs Marquee platform, the highest cohort of respondents, 36%, predicted that gold will continue to rise and surpass $5,000 per troy ounce by the end of the next year.
According to the survey, which was carried out between November 12 and 14, an additional 33% anticipate the commodity to reach between $4,500 and $5,000.
According to Goldman Sachs, over 70% of institutional investors anticipate a rise in gold prices next year. On the other hand, slightly more than 5% of respondents believe that prices will decline to between $3,500 and $4,000 in the upcoming year.
Spot prices of gold increased 0.45% to $4,175.50 on Friday, reaching a two week high thanks to expectations of a Federal Reserve rate drop. At $4,187.40, gold futures were up 0.53%.
According to the study, 27% of participants cited budgetary concerns as the primary cause of the increase in gold prices, while 38% cited central bank purchases.
This year, a wide range of investors, including hedge funds and ordinary buyers, have flocked to the commodity, which is typically viewed as a safe haven asset during turbulent times, as a hedge against inflation risk, geopolitical unrest, and a declining dollar.
Due to gold's high liquidity, low default risk, and generally neutral reputation as a reserve asset, central banks around the world have also poured in.
According to Phil Streible, chief market strategist at Blue Line Futures, the gold bull run is probably going to last until 2026. The global economic outlook continues to support gold, noting that many nations are still dealing with slowing GDP and rising inflation.
At this year's Sohn London investment conference, Carson Block, the founder of Muddy Waters Capital and well known for his short selling, revealed an unusual long call in Canadian junior miner Snowline Gold.
Block stated that in an industry where consolidation is increasing, he considered the company to be a desirable takeover candidate.
