$3,650! As Gold Climbs to Record Heights, Goldman Sachs Sees Unprecedented Bullish Sentiment

Last week, bullion surged past $3,500 per ounce, marking a historic high, and this week’s rally propelled spot gold above $3,600, setting yet another record in rapid succession. Over the past ten trading sessions, nearly every day has ended with higher spot prices, underscoring the metal’s relentless upward momentum.

A recent Goldman Sachs report highlights that, for the first time in the past five years, gold has overtaken developed-market equities as the most favored long position among investors. The survey reveals that the ratio of bullish to bearish sentiment on gold now stands at almost 8 to 1, an overwhelming indication of market optimism.

Intriguingly, both self-identified bulls and bears place a long position in gold at the top of their trading priorities. Goldman’s analysts attribute this consensus to three main drivers: broad expectations that the Federal Reserve will soon commence rate cuts, persistent concerns over the Fed’s independence, and robust physical demand from central banks and prospective private buyers.

In this environment, Goldman Sachs has reaffirmed its bullish stance on gold. Samantha Dart, Co-Head of Global Commodities Research, stated plainly that gold remains the firm’s strongest long recommendation within the commodities sector.

Goldman also warns that a significant erosion of the Fed’s credibility could trigger an extraordinary rally. According to the bank’s forecast framework, a minimal reallocation of U.S. Treasury holdings—just 1% of privately held paper—into gold could drive prices toward the $5,000-per-ounce threshold.

The analysts outline three potential trajectories: a baseline scenario that sees gold reach $4,000 by mid-2026, a tail-risk projection peaking at $4,500, and an extreme outcome approaching $5,000 if that small shift into gold materializes. In such a case, rising inflation, simultaneous declines in equities and bonds, and a weakened dollar reserve status would amplify gold’s appeal as a trust-independent store of value.

Gold has already emerged as one of the best-performing major commodities this year, climbing more than 30% and establishing fresh all-time highs earlier this week. Central bank purchases, expectations of Fed easing, and heightened political pressure on the Federal Reserve have all played key roles in sustaining this powerful uptrend.