Gold’s Bullish Momentum Gains Structural Support

The gold market continues to captivate investors, with developments across investment banking, corporate activity, digital assets, and exploration painting a coherent picture of a sector building sustained upward momentum. The foundation for this rally appears increasingly broad-based.

Market strategists at Goldman Sachs have significantly upgraded their long-term outlook for the precious metal. The bank now forecasts gold reaching $4,900 per ounce by the end of 2026. While geopolitical tensions are a noted factor, analysts highlight a structural gap in US demand as a primary catalyst.

Their central thesis focuses on asset allocation: US households currently hold approximately 0.17% of their wealth in gold. Goldman Sachs argues that even a modest "normalization" of this allocation could significantly impact the already tight physical market.

Key takeaways from the analysis include:
* Price Target: $4,900 per ounce by year-end 2026.
* Primary Drivers: Geopolitical risk combined with low gold allocation in US private portfolios (~0.17%).
* Central Bank Role: Ongoing purchases have established a solid baseline for the bull market.
* Next Cycle Catalyst: Increased participation from private US investors, particularly if gold gains acceptance as a strategic portfolio component.

This outlook aligns with recent market performance. Gold closed Friday at $4,329.80, marking a fresh 52-week high. The metal is up just over 3% on a 30-day basis and stands nearly 10% above its November 52-week low. With a Relative Strength Index (RSI) reading of 57.7, the market does not yet signal excessive overbought conditions despite recent gains.

Corporate Activity: Leveraging High Prices

At the corporate level, companies are actively capitalizing on the favorable price environment. Gold Royalty Corp. has completed the acquisition of a royalty on the Pedra Branca mine in Brazil for $70 million, paid in full with cash.

A key aspect of this deal is the operator: the mine is run by a subsidiary of BHP Group, lending the project a "Tier-1" profile and enhancing the visibility of future cash flows. For Gold Royalty Corp., the transaction provides:
* Immediate participation in current production.
* Revenue generation in a market where each ounce commands a high price.
* A strengthened balance sheet, supported by a concurrently closed $103.5 million financing package intended for further acquisitions.

This move strategically positions the company in a market where high-quality, cash-flowing assets are in strong demand.

Should investors sell immediately? Or is it worth buying Gold?

Exploration Gains New Relevance

The new price dynamics are also revitalizing the exploration sector. Miata Metals reported fresh drill results from its Sela Creek project, highlighting the "Jons Trend Zone," where the known mineralization footprint has reportedly been doubled.

This progress is particularly significant with gold trading well above $4,300. Projects that were considered marginal or uneconomic at around $2,000 per ounce are now entering the realm of potentially high-return acquisition targets. The positive sentiment is increasingly spreading to junior and small-cap companies, which gain enhanced financing and development prospects in a higher-price environment.

Clarifying Digital Gold Reserves

In the burgeoning digital gold segment, clarity around asset backing is paramount. Recent misinformation has circulated regarding the reserves behind the Tether Gold (XAUT) token, suggesting backing of over 16 tonnes.

The factual position, as of the end of Q3 2025, is that the physical reserves explicitly dedicated to backing the XAUT token amount to precisely 11.6 tonnes. This distinction is critical for investors because:
* While the Tether group holds substantially larger gold reserves, including for products like USDT,
* The XAUT token itself is directly backed solely by the stated 11.6 tonnes.

Investors in tokenized gold must therefore clearly differentiate between a firm's aggregate reserves and the specific collateral pool for an individual digital instrument to accurately assess its security.

Conclusion: A Multi-Faceted Bullish Foundation

The current landscape in the gold sector demonstrates consistency across multiple fronts: a substantiated long-term price forecast from Wall Street, continued foundational support from central bank buying, robust corporate transaction activity, growing interest in digital gold products, and an exploration sector receiving a fresh impetus from current prices.

Trading near 52-week highs with a still-moderate RSI, the market maintains a clear upward trajectory without entering extreme overbought territory. The sustainability of the rally will likely hinge on whether the anticipated demand surge from US private investors materializes and if the brisk pace of corporate activity continues. Should these trends persist, the current gold bull market possesses a remarkably solid foundation for the quarters ahead.