🚀 Discover this must-read post from Investopedia | Expert Financial Advice and Markets News 📖
📂 Category: Markets News,News
📌 Main takeaway:
Gold has shined this year. There is good reason to expect the precious metal to continue hitting record levels next year.
Several Wall Street firms released reports this week showing that analysts and investors believe the price of gold will rise in 2026, with some predicting it could reach $5,000 per ounce, meaning a roughly 20% rise. Many of the factors that prompted investors to pour money into traditional safe-haven assets are likely to remain in place, experts say.
Why is this important?
Gold has recorded a series of record highs this year amid economic and geopolitical uncertainty that is not expected to subside anytime soon. Some prominent investors have recently recommended that investors increase their allocations to gold. Meanwhile, many Americans rushed to sell gold jewelry, taking advantage of the high prices.
Nearly 70% of institutional investors expect gold prices to continue rising, with 36% of them saying the price will exceed $5,000 by the end of 2026, according to a survey this month of more than 900 clients, Goldman Sachs said on Friday. Investors pointed to continued buying by central banks around the world and financial concerns as the biggest factors contributing to gold’s rise.
Gold was trading at $4,220 an ounce on Friday morning. (Reads Investopedia Full coverage of the day’s trading here.) That’s down from a record high of just under $4,400 set in October, but still 60% higher than where it started 2025. The rise in gold prices has far outpaced the performance of the benchmark S&P 500 stock index.
TradingView
The weakness of the US dollar, which has lost strength this year as concerns grow about rising US government debt, is also supporting gold, along with concerns about geopolitical instability and stock market volatility.
Deutsche Bank this week raised its forecast for the price of gold in 2026 to $4,450 from $4,000 previously, forecasting a range between $3,950 and $4,950.
“Q3 supply and demand data support continued central bank supply. The positive structural picture shows inelastic demand from central banks and ETF investments shifting supply from the jewelry market,” Deutsche Bank said in a note to clients. “The overall growth in demand is also outpacing supply.”
UBS believes further weakness in the dollar, lower bond market yields, geopolitical uncertainty and financial concerns will all continue to provide support for gold. The bank maintains an “attractive” stance on gold with a target price of $4,500 for mid-2026, according to a report released on Friday.
⚡ What do you think?
#️⃣ #experts #gold #prices #reach
