5 Factors That Could Extend Gold S 2026 Rally The Economic Times

Bonisiwe Shabane

-Dec 27, 2025, 8:34 PM

5 factors that could extend gold s 2026 rally the economic times

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets.

Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. From Sectors and Smart Beta to Fixed Income, SPDR Exchange Traded Funds (ETFs) give you wide access to diverse investment opportunities. Find out more. When asked if $5,000/oz gold is in play for 2026, we think back to August 1994 and the debut studio album title for legendary British rockers Oasis (who went on an epic world tour...

In the middle innings of a structural bull cycle, five structural forces continue to shape the gold market. These trends are unlikely to reverse in 2026 and, collectively, point to a supportive backdrop for prices. Importantly, these drivers are separate from short-term factors such as volatility spikes, risk-asset sell-offs, or stagflation fears that could temporarily boost gold demand: 1. Alternative fiat and global debasement trade. Global sectoral debt rose to $340T in mid-2025 and, notably, the government share of that debt also reached a record 30%.2 At 3-4x global GDP, debt levels raise concern for investors.

As record debt and stubborn inflation push long-term yields higher, gold becomes an attractive hedge against duration risk and currency debasement. 2. Elevated stock/bond correlations. US stock/bond correlations soared to 30-year highs during the post-COVID inflation spike and Fed tightening cycle.3 While correlations eased somewhat in 2025, it is unclear whether they will return to the inverse relationship that... Meanwhile, the gold/US dollar (USD) correlation remains anchored. If stock/bond correlations remain historically elevated, gold’s role as a diversifier and left-tail hedge becomes even more important as investors seek alternatives to traditional 60/40 or 70/30 portfolios.

Sign up now: Get ST's newsletters delivered to your inbox Analysts expect gold to climb to between US$4,600 per and US$4,800 per ounce in 2026. The yellow metal, which rose by over 60 per cent to a record high of over US$4,500 per ounce in 2025, is enjoying its biggest annual gain in 46 years. It has also climbed by more than 130 per cent since 2020, outpacing that of the S&P 500 index, which rose by just over 85 per cent within the same period. Several factors underpin gold’s prospects for further gains. Central banks around the world have been aggressively adding gold to their reserves in recent times – a phenomenon triggered by Russia’s invasion of Ukraine in 2022 and the freezing of Moscow’s foreign assets.

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Bitcoin's 'Santa' rally may be ignited by the Federal Reserve's upcoming interest rate decision. This article analyzes the macroeconomic factors potentially influencing Bitcoin's performance into 2026. Western Union expands into digital assets with a new stable card and plans to issue its own stablecoin, focusing on emerging markets. For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data. At Morgan Stanley, we lead with exceptional ideas.

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Across all our businesses, we offer keen insight on today's most critical issues. Kardemir announced its sales plan for the first quarter of 2026 Türkiye imposed anti-dumping measures on cold-rolled stainless steel imports from China Türkiye–Hong Kong investment agreement enters into force OYAK Cement crowned its sustainability leadership by joining the BIST sustainability 25 index Turkey issues AD duty on CR stainless flat steel imports from China

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The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services. Over the past 50 years, the stock market has produced the highest average annual returns of any asset class. But that wasn't the case in 2025. Instead, precious metals took the limelight, with gold gaining more than 64% amid heightened geopolitical unrest, a slowing U.S. economy, a weakened dollar and the Federal Reserve enacting an interest rate-cutting cycle.

Those macroeconomic conditions resulted in aggressive central-bank buying while also fueling a frenzy in exchange-traded funds (ETFs) backed by physical gold. Gold has experienced a remarkable 2025, achieving over 50 all-time highs and returning over 60%.1 This performance has been supported by a combination of heightened geopolitical and economic uncertainty, a weaker US dollar, and... Both investors and central banks have increased their allocations to gold, seeking diversification and stability. Looking to 2026, the outlook is shaped by ongoing geoeconomic uncertainty. The gold price broadly reflects macroeconomic consensus expectations and may remain rangebound if current conditions persist. However, taking cues from this year, 2026 will likely continue to surprise.

If economic growth slows and interest rates fall further, gold could see moderate gains. In a more severe downturn marked by rising global risks, gold could perform strongly. Conversely, a successful outcome from policies set by the Trump administration would accelerate economic growth and reduce geopolitical risk, leading to higher rates and a stronger US dollar, pushing gold lower. Additional factors, such as central bank demand and gold recycling trends, could also influence the market. Most importantly, gold’s role as a portfolio diversifier and source of stability remains key amid continued market volatility. Login or register to read the text, view charts and download the files..

Registration is free, quick and easy. It gives you access to all downloads on this website. Silver has shattered its psychological barrier, breaking past $60 per ounce for the first time in history. This milestone in the precious metals bull market signals fundamental shifts in industrial demand and monetary dynamics that could sustain higher prices for years. Discover the five key drivers behind this unprecedented surge and why $75 may be the next target. Institutions are turning increasingly bullish on gold, with many forecasting prices above $5,000 by 2026.

Driven by record central bank buying, rising geopolitical tensions, and persistent inflation, the 2026 gold price prediction reflects powerful structural forces reshaping the market. Is your portfolio positioned for what comes next? For more than a century, the London Gold Fixing—now the LBMA Gold Price—has set the benchmark that guides global gold transactions. Today’s transparent, twice-daily electronic auctions reflect real-time supply and demand, shaped by central bank policies, inflation, currency movements, geopolitics, and physical market fundamentals. Understanding these forces helps investors interpret price movements and make more informed decisions in the precious metals market. Inflation quietly erodes the value of your dollars, making the gold vs cash debate more important than ever.

Learn why gold preserves purchasing power while cash loses it — and how this affects long-term wealth. In 2026, more investors are choosing to buy precious metals as gold and silver gain traction in modern portfolios. With rising inflation, shifting institutional strategies, and growing demand from central banks, precious metals are becoming a core asset for diversification and long-term stability.

5 Factors That Could Extend Gold S 2026 Rally The Economic Times

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