Gold has delivered one of its strongest annual performances in decades, and many institutional investors believe the rally is far from over.
Prices have climbed nearly 60% since the start of the year, breaching the $4,000 mark for the first time on October 8 and continuing to push higher through November.
A new survey of more than 900 institutional clients by Goldman Sachs found that the majority expect gold to extend its gains into next year and beyond.
According to the results, 36% of respondents — the largest single group — believe gold will surpass $5,000 per troy ounce before the end of 2026.
Another 33% expect prices to land between $4,500 and $5,000, signalling broad confidence that the bull run still has room to grow.
More than 70% of those surveyed forecast further upside for gold in the next 12 months.
Only a small minority, just over 5%, predict a pullback toward the $3,500 to $4,000 range.
Gold’s upward momentum has been supported by a mix of geopolitical tension, inflation concerns, and sustained demand from central banks.
Spot prices recently rose to a two-week high, buoyed by expectations of a Federal Reserve rate cut.
Futures also climbed, reflecting investors’ belief that monetary easing could further weaken the dollar and lift demand for precious metals.
In the survey, 38% of respondents said central bank gold purchases have been the biggest driver of the price surge.
Another 27% pointed to global fiscal concerns.
Analysts note that a wide range of investors — from retail buyers to hedge funds — have increased allocations to gold as a hedge against market uncertainty.
Central banks continue to accumulate gold due to its liquidity, lack of default risk, and neutrality as a reserve asset.
Phil Streible, chief market strategist at Blue Line Futures, said the outlook for 2026 remains supportive.
“The global economic outlook continues to support gold,” he said.
He added that many countries continue to face slowing growth paired with elevated inflation, a combination that typically boosts safe-haven demand.
Some investors are also turning to mining companies as a leveraged bet on rising gold prices.
Portfolio managers such as Blue Whale Capital’s Stephen Yiu have highlighted major miners as attractive long-term holdings.
Others, including short-seller Carson Block, have taken rare long positions in junior mining firms they believe could become takeover targets amid rising sector consolidation.
As gold continues setting new benchmarks, analysts say the next year will be key in determining whether the metal’s rally stabilises or accelerates toward the historic $5,000 mark that many now expect.
