Institutional investors are feeling remarkably optimistic about gold's prospects, according to a fresh survey from Goldman Sachs (GS). The survey, which polled more than 900 institutional investors on Goldman's Marquee platform from November 12-14, found that over 70% expect gold prices to rise further in the upcoming year. Even more striking: 36% believe prices could top $5,000 per troy ounce by the end of 2026.
What's Fueling the Gold Rush?
The drivers behind this bullish sentiment are pretty straightforward. Central bank purchases were cited by 38% of survey participants as a key factor, while 27% pointed to fiscal concerns as the main reason for gold buying. It's not just individual investors piling in—central banks around the world have been steadily accumulating gold reserves.
Phil Streible, chief market strategist at Blue Line Futures, told CNBC that "the global economic outlook continues to support gold," pointing to slowing growth and growing inflationary pressures as tailwinds for the precious metal.
Wall Street's Heavy Hitters Agree
The institutional optimism isn't happening in a vacuum. Several prominent market analysts have been calling for similar price targets. Ed Yardeni, a market veteran, projected in October that gold could reach $5,000 by 2026 and even $10,000 by 2030, citing geopolitical uncertainty and a collapse in China's housing market as driving forces.
DoubleLine Capital's Jeffrey Gundlach has also echoed the $5,000 target, calling gold a recognized "real asset class" and his top investment idea. He's recommending a 15% portfolio allocation to the yellow metal—a substantial position for any asset class.
Bank of America (BAC) and JPMorgan (JPM) CEO Jamie Dimon have also forecast $5,000 gold by 2026, adding more institutional weight to the bullish thesis.
Where Gold Stands Now
Gold has edged higher over the past year, reaching $4,217.8 per troy ounce, representing a gain of 1.4%. Over the past month, however, it's seen a slight dip, slipping 0.08% to $4,216.7, according to TradingEconomics.
For investors looking to gain exposure, the SPDR Gold Trust (GLD), the largest physically backed gold ETF, traded at $387.88, up 1.24% on Thursday. With institutional sentiment this strong and major analysts lining up behind ambitious price targets, gold's trajectory is worth watching closely.