Crédit Agricole Stands by $5,000 Gold Forecast Despite Recent Decline

Gold prices have taken a hit in September, closing near $4,136 an ounce, which is 1.13% lower than the previous Friday. This decline follows a 6.64% drop for the month, leaving the precious metal roughly 21% below Crédit Agricole’s ambitious $5,000 target for December. Despite weak US jobs data, which might have otherwise boosted gold’s appeal, the price failed to recover.

Crédit Agricole remains bullish on gold’s long-term prospects, predicting it will reach $5,000 by December 2026 and $5,500 by December 2027. The bank attributes gold’s recent underperformance to competition from interest-bearing US Dollar assets, but insists it remains the top safe-haven asset and hedge against currency debasement.

The bank’s analysis highlights a divergence in demand, noting that while central bank reserves have increased, private investors are not rushing to buy gold. It also points out that some central banks, such as those in Turkey and India, have reduced their gold reserves during crises to meet demand for US Dollars. This dynamic adds uncertainty to the short-term outlook, even as the longer-term forecast remains supported by growing central bank demand and limited supply.

With the December 2026 target looming, the timing of gold’s recovery remains a critical factor in Crédit Agricole’s prediction. The bank acknowledges the challenges but stands by its forecast, emphasizing gold’s enduring role as a safe-haven asset.