Gold is having its best year since 1979.
Gold has outperformed all other asset classes this year, including stocks and Bitcoin. The price of gold keeps setting new records and recently crossed a major milestone, surpassing $4,000 per ounce.
Currently, an ounce of gold is worth $4,065, after another 1.5% increase on Wednesday. Year-to-date, gold has returned about 52% as of October 8, which beats the S&P 500 (up 15%), the Nasdaq Composite (up 19%), and Bitcoin (up 31%).
It has been the best year for gold since 1979, when the price of gold rose about 133%.
What’s driving the surge in gold prices? Like 1979, it is a combination of factors related to economic uncertainty, geopolitical strife, and rising inflation – although the inflation rates are nowhere near where they were in 1979.
Unlike 1979, the stock market has been strong, however, it is also historically overvalued. That could also be a reason for the flight to gold, as investors are worried about a possible stock market correction.
So where does the price of gold go from here? Can it continue to move higher?
Goldman Sachs raises 2026 price target for gold
The price of gold has already surpassed analysts’ expectations. Just a few weeks ago, researchers at Goldman Sachs said gold would hit $4,000 in 2026. At the time, in mid-September, it was priced at around $3,700 per ounce, so in less than a month it blown past that.
Since then, Goldman Sachs has revised its outlook for gold, setting a price target of $4,900 per ounce by the end of 2026. That would mark another 22% gain over its current price.
Alex Tsepaev, chief strategy officer at B2PRIME Group, says there are several global trends that could continue to drive gold higher in the near-term.
When there is such a high level of uncertainty and turbulence in the world, it’s always a good idea to invest in gold,” Tsepaev said. “Beyond providing stability, gold has become a real growth story and will continue to be shaped by global tensions, big central bank purchases (from China to Poland), and the growing economic influence of the East. In places like India and the Gulf, people see gold as something with lasting, inherent value, and that’s what also keeps demand strong year after year.”
Tsepaev also cited the softening of monetary policy in many countries, where central banks are becoming more dovish.
“And as we know, the lower the rate, the better is for gold,” Tsepaev said. “Also, the dollar keeps falling, which means that gold is getting more expensive not so much by itself as relative to depreciating money.”
Other leading analysts recently came out with new projections for gold, including Ed Yardeni of Yardeni Research. On Monday, Yardeni predicted gold to hit $5,000 by the end of 2026 and $10,000 by 2030. But for now, according to analysts, it appears gold still has some room to run.
