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Gold Poised To Continue Shining In 2026 Amid Central Bank Demand

Bonisiwe Shabane
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gold poised to continue shining in 2026 amid central bank demand

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.

Gold entered 2026 at levels few institutions believed possible just two years earlier. An extraordinary 2025 rally driven by aggressive central-bank buying, persistent geopolitical tension, and expectations of monetary easing pushed prices to all-time highs above $4,300 per ounce and forced banks to rewrite their outlooks. This article consolidates the most authoritative projections from major banks and respected analysts, along with the relevant forward-looking forecasts from earlier institutional research, so you can track how projections have changed over time. The chart below shows real-time gold spot prices tracked by Lear Capital and updated throughout the trading day. Before gold accelerated far beyond expectations, several institutions issued more conservative targets. Some of these remain useful as reference points that illustrate how sharply sentiment has changed.

These earlier forecasts now read like the first chapter in a much larger price repricing. By the end of 2025, gold had sailed past $4,000, prompting an industry-wide reset of forward expectations. Central bank demand for gold is predicted to continue rising into 2026, even as record high prices fuel fears the asset is already in bubble territory. Julia Du, senior commodities strategist at ICBC Standard Bank, told The Banker: “Central banks’ gold purchases are driven by both safe-haven demand and the need to diversify foreign exchange reserves, including reducing dependence on... Monetary authorities must now look beyond inflation to ensure financial stability Recent history reveals the true value of autonomy to the bond markets

Central bank’s stress test finds that no bank is required to submit a revised capital plan (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. We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed.

Not all brands are included. Learn more. https://money.com/gold-price-rally-predictions-2026/ Money is not a client of any investment adviser featured on this page. 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 prices have rebounded on renewed expectations for U.S.

interest-rate cuts, persistent geopolitical risk, and strong central bank demand. A softer dollar and stabilizing inflation data have restored gold’s appeal as both a hedge and a portfolio diversifier. Looking ahead to 2026, analysts see a constructive—but more volatile—price environment shaped by monetary policy, fiscal stress, and evolving investor behavior. After a choppy period marked by stubborn inflation and restrictive monetary policy, gold has staged a notable rebound, reminding investors why the metal remains a core defensive asset. Prices have climbed as markets recalibrate expectations for economic growth and interest rates, while global uncertainty continues to underpin demand. Ernest Hoffman is a Crypto and Market Reporter for Kitco News.

He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news... He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339. Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement

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