Gold prices dipped in late October, sparking debate on the future of the rally. Despite a drop below $4,000 per ounce, gold rebounded, rewarding investors with a 6% return. Goldman Sachs predicts bullish trends for 2026, citing economic growth, labor market issues, and inflation pressures.

Job cuts surged by 175% in October, totaling 153,074, with 1,099,500 announced this year. Unemployment hit 4.4% in September, up from 4% in January. 40% of companies laid off workers in 2025, with 60% planning cuts in 2026. The U.S. faces mounting debt and economic uncertainty.

Treasury yields and the U.S. Dollar decline as uncertainty rises. Lower yields and a weaker Dollar historically benefit gold prices. Gold’s retreat in October was influenced by Fed Chair Powell’s comments. With positive outlooks for rate cuts, gold prices are climbing again.

Goldman Sachs anticipates a 20% increase in gold prices for 2026. Central banks have been buying more gold annually since 2022. With a small market size and growing central bank interest, gold prices could surge further. Monthly central bank buying is expected to average 80 tonnes through 2026.

Read more at Yahoo Finance: Goldman Sachs’ exec shares gold price forecast for 2026