Gold is set to be the top performer in 2026, driven by strong central bank buying and rising global tensions, according to Goldman Sachs' latest commodities outlook report. The bank forecasted gold prices to reach $4,900 by December in the new year, with central banks expected to purchase 70 tonnes monthly, which is four times higher than pre-2022 levels, as cited by ANI.
The increased central bank demand for gold will be largely influenced by geopolitical concerns, particularly after the freezing of Russia's reserves in 2022. This factor by itself is predicted to boost prices by 14 percentage points by next December. The bank also sees potential for higher prices from private investors, noting that "gold ETFs account for just 0.17 per cent of US private financial portfolios."
Silver is also expected to give good returns, banking on the overall strength in precious metals. It had strong rally in this year, and the trend is likely to continue as precious metals typically gain when the Federal Reserve cuts rates.
Under the base metals heading, copper prices are expected to be stabilized around $11,400 per ton, backed by its recent surge in prices from $10,600 to $11,700. However, according to Goldman Sachs, even with such consolidation, they remain optimistic with regard to copper prices and their applications in AI, power, and defense installations.
However, Lead is set to have a more challenging time. The bank expects varying returns across commodities in 2026, with industrial metals facing pressure due to increasing supply. Some of this supply growth is also being driven by Chinese overseas investments in metals crucial to AI and geopolitical competition.
The report added that although overall commodity returns may moderate next year, other structural factors will continue to influence geopolitics, energy transition, and supply concentration in markets. Gold remains its top commodity pick, but copper retains longer-term support in otherwise challenging base metals.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Get a chance to win ₹5000 Amazon Voucher by taking part in India's Biggest Habit Index! Take the survey here
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment