Goldman Sachs recommends commodities as portfolio insurance heading into 2026, with gold as highest-conviction call after rising over 65% in 2025. Central banks expected to buy gold at an average rate of 70 tonnes per month in 2026, up from pre-2022 levels. Geopolitical and macroeconomic factors drive interest in commodities for portfolio protection.

Goldman Sachs views commodities as a form of insurance in today's volatile market, citing geopolitical tensions and concentrated supply chains as factors driving their value. Strategists predict commodities will continue to provide portfolio protection, emphasizing their importance amidst global uncertainties. Gold, particularly the SPDR Gold Shares (NYSE: GLD), remains a key focus for the firm, with a 65% rise in 2025. This growth is attributed to structural demand from central banks and geopolitical risk assessments. Goldman anticipates sustained strong central bank gold buying in 2026, averaging 70 tonnes per month, signaling a shift in investment trends towards safe-haven assets like gold.