Major central banks are likely continuing to buy large amounts of gold in November, according to Goldman Sachs. This isn’t a one-off—Goldman sees it as part of a multi-year trend of governments diversifying away from traditional reserve assets and into gold.
The firm highlights these numbers: around 64 tonnes of gold were bought by central banks in September, up from 21 tonnes in August. Goldman expects similar volumes for November and reinforced its bullish view on gold, forecasting prices could reach $4,900 per ounce by end-2026.
Why This Matters
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When central banks buy gold, it signals confidence in gold’s role as a reserve asset—not just a speculative play.
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More demand from central banks tightens supply while the market expects growing interest from private investors. That dynamic can push prices up.
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A $4,900 target by end-2026 means Goldman sees meaningful upside from current levels.
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As major institutions shift reserves, it affects global currency dynamics, inflation hedging and asset-allocation strategies.
What Investors Should Note
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If you’re holding gold or considering adding some, this reinforces the argument that gold is not just a hedge; it may be moving into the “core asset” category.
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But: central-bank purchases are structural rather than tactical. That means the upside may be slower and steadier—not explosive overnight.
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Risk remains: even with bullish trends, gold is non-yielding (you don’t earn dividends or interest) and can be volatile in the short term.
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Timing matters: If many investors start piling in, the risk of a short-term correction exists even if the long-term trend remains up.
Bottom Line
Gold is getting serious backing from the big players—central banks. Goldman Sachs is pitched bullish, projecting nearly $5,000/oz by 2026 if the trend holds. For someone building or adjusting a portfolio, this signals that gold may deserve a larger strategic spot than just “emergency insurance.” But don’t ignore the normal cautions: market timing, liquidity, cost and the fact that past trends aren’t guarantees.