Goldman Sachs survey: 70% of respondents bullish on gold prices, 30% expect it to surpass the 5000 milestone next year.

A survey by Goldman Sachs shows that many institutional investors believe that gold will hit a historical high of $5000 per ounce before the end of 2026. According to a survey of over 900 institutional investor clients conducted on the Goldman Sachs Marquee platform from November 12 to 14, 36% of respondents (the largest group) expect gold to maintain its momentum and rise above $5000 by the end of next year. Another 33% of respondents expect gold to rise to the range of $4500 to $5000. Goldman Sachs concluded that more than 70% of institutional investors expect gold to continue to rise next year, with only slightly over 5% believing that gold prices will fall to the range of $3500-$4000 in the next 12 months. Boosted by expectations of Fed rate cuts, spot gold rose to $4215 per ounce on Friday, up over 60% since the beginning of the year. On October 8, spot gold prices broke through the key level of $4000 for the first time and hit a record high of $4381 a month ago. In the Goldman Sachs survey, 38% of respondents believe that the main driving force behind the rise in gold prices is the continued buying of gold by central banks around the world; 27% attribute it to fiscal issues. Phil Streible, Chief Market Strategist at Blue Line Futures, said that the uptrend in gold prices may continue until 2026, citing that "the global economic outlook continues to support gold prices." Many countries are facing dual pressures of slowing growth and rising inflation. This year, a wide range of investors, from retail investors to hedge funds, are buying gold as a traditional safe-haven asset in the face of inflation risks, geopolitical crises, and a weakening US dollar. Central banks around the world are also actively increasing their gold holdings, focusing on its high liquidity, no default risk, and neutral status as a reserve asset. Some investors are also participating in the gold market by betting on gold mining companies. Stephen Yiu, fund manager at Blue Whale Capital, recently stated in an interview that he is betting on the world's largest gold miner, Newmont. The stock has surged nearly 148% since the beginning of the year, outperforming gold. Carson Block, founder of renowned short-selling firm Muddy Waters, publicly expressed his bullish view on Canadian mining company Snowline Gold, suggesting that it could be a quality acquisition target in the current M&A frenzy. This article is reprinted from "Caixin", edited by Xu Wenqiang, GMTEight.