Gold prices have stumbled over the past four months, but Goldman Sachs believes the pullback is unlikely to mark the end of the precious metal's rally, a view that could reignite interest in gold-backed ETFs if the investment bank's forecast plays out.
Citing a note released Sunday, Yahoo Finance reported that Goldman Sachs co-head of global commodities research Samantha Dart reiterated the firm's bullish stance, writing that "Gold is not done." While bullion has retreated from record highs reached earlier this year amid expectations of a hawkish Federal Reserve and persistent inflation, Goldman continues to forecast gold will climb to $4,900 per troy ounce by the end of 2026.
The firm argues that both structural and cyclical drivers remain intact, even as the potential for higher interest rates has temporarily weighed on investor demand for gold and gold-backed ETFs.
Read Also: Gold ETFs Just Saw Their Biggest Weekly Inflow Since April After $7.6 Billion Exodus Gold ETFs to watch Should investor sentiment toward bullion improve, several physically backed gold ETFs could benefit from renewed inflows.
The largest fund in the space, SPDR Gold Shares (NYSE:GLD), remains the industry's bellwether, offering investors direct exposure to the price of physical gold.
