Goldman Sachs sees gold prices climbing 14% to $4,900 per ounce by December 2026 in its base case, it said in a note on Thursday, while citing upside risks to this view due to a potential broadening of diversification to private investors.
In a note in which the bank discussed its views on commodities for 2026, Goldman Sachs said it expects structurally high central bank demand and cyclical support from U.S. Federal Reserve interest rate cuts to lift the price of gold. It continues to recommend long exposure in the yellow metal.
Spot gold was trading at $4,334.93 per ounce at 1824 GMT on Thursday.
The bank also forecast the price of copper to consolidate in 2026 and average $11,400 per metric ton under its base case that uncertainty over tariffs will linger until a possible announcement in mid-2026 that the U.S. will implement tariffs on refined copper in 2027.
"Despite the recent rally in copper prices and our expected consolidation in 2026, it remains our 'favorite' industrial metal, especially in the long-run, as electrification - which drives nearly half of copper demand - implies structurally strong demand growth and as copper mine supply faces unique constraints," Goldman noted.
Benchmark three-month copper on the London Metal Exchange was little changed at $11,721.50 per metric ton as of 1723 GMT on Thursday. It hit a record high of $11,952 last week.
The bank forecast Brent and WTI crude oil to decline further to 2026 averages of $56 per barrel and $52 per barrel, respectively.
"Barring large supply disruptions or OPEC production cuts, lower oil prices in 2026 will likely be required to rebalance the market after 2026," it added.
Brent crude was trading at $60.04/bbl at 1711 GMT on Thursday. U.S. West Texas Intermediate crude was near $56.46/bbl.
Goldman expects oil prices to hit their lowest point around mid-2026, as markets begin to anticipate a rebalancing. The note added that this will be driven by solid demand growth of about 1.2 million barrels per day, further declines in Russian supply if the war in Ukraine and sanctions persist, and slowing non-OPEC ex-Russia output.
"We see net downside risks to our 2026-2027 oil price outlook," Goldman noted.
However, the bank said it assumes oil prices will pick up in the fourth quarter of next year as the market starts pricing in a return to a deficit in the second half of 2027 and shifts focus to incentivizing long-cycle production.
It added that it expects the prices of Brent and WTI to gradually recover to $80/bbl and $76/bbl, respectively, by late 2028.
For natural gas, the bank said it forecasts 2026 Title Transfer Facility (TTF) at 29 euros per megawatt-hour (EUR/MWh) and 2027 TTF at 20 EUR/MWh, to incentivize additional gas demand, while it expects 2026 and 2027 U.S. gas prices to incentivize U.S. gas production growth at $4.60 per million British thermal units (mmBtu) and $3.80/mmBtu, respectively.
Source: Investing.com
Japan's annual inflation rate edged down to 2.9% in November 2025 from October's 3-month high of 3.0%. Core inflation stood at 3.0%, keeping the same pace as in October and aligning with estimates. Mo...
The BRICS group of countries is increasingly being considered as an alternative for global diplomacy and cooperation amidst increasing tariff and protectionist policies from the United States. A numbe...
Applications for US unemployment benefits fell after a spike in the previous week, underscoring the choppy nature of the data at this time of year. Initial claims decreased by 13,000 to 224,000 ...
Annual inflation in the United States (US), as measured by the change in the Consumer Price Index (CPI), fell 2.7% in November, according to a report by the US Bureau of Labor Statistics (BLS) on Thur...
The Bank of England cut Bank Rate by 25 basis points to 3.75%, its lowest level since 2022, as easing inflation and growing signs of economic stress prompted policymakers to act. This marked the first...
President Vladimir Putin said he is willing to discuss ending Russia's war in Ukraine, despite rejecting changes sought by Kyiv and Europe to the U.S. peace plan drafted with Moscow. Putin said he has "practically agreed" to the proposals to end...
Gold prices fell slightly on Friday (December 19), pressured by a stronger dollar and year-end investor positioning, but are poised to end the week higher as weaker US inflation data raised speculation of an interest rate cut. Spot gold prices...
Oil prices fell on Friday (December 19th) and are expected to post a second straight weekly decline as potential oversupply and the prospect of a Russia-Ukraine peace deal outweigh concerns over disruptions caused by a Venezuelan oil tanker...
Fed Governor Christopher Waller said Wednesday that the Fed is in no rush to cut interest rates, given the current outlook, according to...
Stocks fell slightly on Tuesday as traders digested the delayed release of the November's jobs report.
The S&P 500 fell 0.1%, while the Nasdaq...
Nonfarm Payrolls (NFP) in the United States rose by 64,000 in November, according to a report from the U.S. Bureau of Labor Statistics (BLS) on...
The Bank of Japan (BOJ) is expected to raise interest rates on Friday to a three-decade high, from 0.5% to 0.75%, signaling readiness for further...