If you are planning to invest in gold or buy jewellery, then it is very important to keep an eye on this movement in the bullion market. International brokerage firm Goldman Sachs has made a big prediction regarding gold prices. According to the report, on the basis of record purchases being made by central banks around the world, gold can touch the level of $ 4,900 per ounce in the international market by the end of 2026. If we look at it in terms of Indian currency, this price is around Rs 1.50 lakh per 10 grams.

If compared to the current level of $ 4,550 per ounce, a further increase of about 8 percent can be seen.

Shock in the market due to the stance of the Federal Reserve

A lot of fluctuations have been recorded in the prices of gold in recent times. In fact, on August 28, US Federal Reserve Chairman Kevin Worsh had expressed concern over rising inflation during the Jackson Hole conference. He had hinted at further increase in interest rates. Due to the fear of increasing interest rates, market confidence was shaken and on Friday, a huge fall of more than 3 percent was seen in the price of gold.

Gold's roller-coaster move in 2026

In the current year 2026, gold prices have been like a roller-coaster ride. On January 29 this year, gold had made an all-time high of $ 5,600 an ounce. However, after this, due to profit-booking and global factors, it fell below $ 4,000 by mid-July. Due to return of buying from lower levels, it has recovered by about 15 percent so far.

Rampant purchases by central banks became the reason

The biggest reason behind this possible rise in gold is the aggressive stance of the Central Banks. In order to reduce geopolitical tensions and dependence on the US dollar, various countries are continuously adding gold to their foreign exchange reserves.

According to analysis by Lena Thomas and Dan Struyven, senior analysts at Goldman Sachs Research, gold accumulation by central banks has become a long-term trend. Before the year 2022, an average of 17 tonnes of gold was purchased every month globally, whereas this year this average is expected to increase to 50 tonnes per month. In June 2026 alone, central banks had bought 100 tonnes of gold, in which the Chinese central bank had the largest stake.

The trend of interest rates will decide the way forward

Experts believe that if interest rates remain stable and investor inflows into exchange traded funds (Gold ETFs) return, gold can easily cross the $4,900 mark. However, if the US Federal Reserve tightens monetary policy and increases interest rates, the market may once again see a major correction.