Gold and silver have torn through record highs - and some of the world's biggest banks are now forecasting another powerful leap in 2026.

Spot gold recently surged to an all-time high of $4,391.92 an ounce earlier this week, capping a blistering 67% rise this year, while silver has been even more explosive - up 138% to a historic $69.23 an ounce.

Now Wall Street heavyweight Goldman Sachs has quietly raised the stakes, predicting gold could climb to around $4,900 an ounce by the end of 2026, extending what has already been the metal's strongest annual run since the late 1970s.

Goldman is not alone in predicting further fireworks. JP Morgan expects gold to average around $5,055 an ounce by the final quarter of 2026, while Bank of America sees prices hitting $5,000 next year. Deutsche Bank forecasts a 2026 average of $4,450, with potential peaks as high as $4,950, depending on policy and capital flows.

The renewed optimism comes as investors pile into so-called safe havens on expectations that interest rates in the US are heading lower, weakening the dollar and boosting the appeal of non-yielding assets such as gold.

Markets are currently pricing in further US rate cuts over the next two years - a backdrop that has historically been fertile ground for bullion prices.

Gold's surge this year has been relentless, smashing through the once-unthinkable $3,000 and $4,000 an ounce milestones as geopolitical tensions simmer and central banks continue to stockpile reserves.

Silver has outshone even gold, fuelled by heavy investment demand and stubborn supply constraints. "With December usually producing positive returns for gold and silver, seasonality is on their side," said Matt Simpson, senior analyst at StoneX.

"Given that gold has already risen 4% this month and we're nearing the end of the year, bulls may want to tread with caution as volumes are to deplete and odds of profit-taking are also likely on the rise."

Yet while short-term pullbacks are possible, the longer-term direction of travel is increasingly being revised upwards. Goldman Sachs argues that the forces driving prices higher are structural rather than speculative. Central banks have become consistent buyers, steadily adding to reserves rather than dipping in only during periods of crisis.

According to the World Gold Council, central banks bought a net 244 tonnes of gold in the first quarter of 2025, followed by 166 tonnes in Q2 and a rebound to 220 tonnes in Q3, with a further 53 tonnes snapped up in October alone.

At the same time, falling interest rates are blunting gold's traditional weakness - the fact it pays no income. As yields drop, that drawback fades, leaving gold's role as a store of value firmly back in favour.

Even traditionally more cautious forecasters have raised their targets, underlining just how dramatically expectations have shifted.

After a year in which gold has notched more than 50 record highs, the message from the world's biggest financial institutions is clear that the precious-metal boom may be entering a new phase - and 2026 could deliver yet another golden surge.