The precious metal continues its relentless upward trajectory, with bulls firmly in control. Demonstrating their strength at the close of the trading week, gold finished at a fresh 52-week peak. As investors celebrate current gains, market strategists at Goldman Sachs are already projecting a far more ambitious target. Could this be the early phase of a historic rally?
Fundamental Backing from a Wall Street Giant
The rally receives substantial fundamental validation from one of Wall Street’s most influential institutions. Analysts at Goldman Sachs have reaffirmed their bullish outlook, suggesting the current price represents only a waypoint, not a destination. Their forecast sets a price target of $4,900 per ounce by the end of 2026.
This projection is anchored by two primary catalysts. First is the anticipation of continued declines in interest rates, which enhances the appeal of non-yielding assets like gold. Second is the sustained, robust demand from global central banks actively diversifying their currency reserves.
Technical Signals Align with Bullish Narrative
From a chart perspective, gold’s condition appears exceptionally constructive. The price is trading firmly above its 20-day simple moving average (SMA), which currently provides significant support near $4,170. Market observers interpret the week’s closing at its highest point as a clear indicator of persistent buying interest. Gains in four of the last five daily trading sessions further underscore the dominance of buyers in the current market.
Should investors sell immediately? Or is it worth buying Gold?
Key data from the week:
* Record Pursuit: Friday’s closing price hit the exact 52-week high of $4,329.80.
* Continued Momentum: A weekly gain of 2.42% solidifies the prevailing trend.
* Long-Term View: Goldman Sachs analysts see potential for a rise to $4,900.
Structural Shifts and Strategic Value
Gold’s role as a strategic reserve asset was recently highlighted by a significant discovery in China’s Liaoning province. The largest gold deposit identified since 1949, estimated at 1,444 tonnes with a market value exceeding €160 billion, was reported. While extraction will take years and not impact short-term supply, the discovery reinforces gold’s status as a monetary anchor.
Concurrently, initiatives challenging the US dollar’s dominance are gaining traction. The BRICS alliance is advancing plans for a new digital trading currency backed by gold. These structural evolutions within the global financial system provide additional motivation for investors to seek the safety of the precious metal. The trend’s breadth is further evidenced by silver’s performance; the metal often seen as gold’s sibling surged over 6% recently, confirming strength across the sector.
Outlook: The Path Seems Clear
The convergence of a technical breakout to new highs and fundamental support from institutional buying sends a powerful message. With the market showing no signs of overheating—the Relative Strength Index (RSI) sits at a neutral-to-bullish 57.7—the rally faces few immediate obstacles. A decisive move above the psychologically significant $4,400 level would likely bring the long-term targets outlined by Goldman Sachs sharply into focus.
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