Fed Fears Trump Geopolitics as Gold Price Forecasts Take a Hit

The London Bullion Market Association (LBMA) released its mid-year survey on Tuesday, which found that analysts have become less bullish about gold prices for 2026 compared to six months ago.

Despite hitting a record high of over $5,600 per ounce in January, the average year-end forecast now stands at $4,500 per ounce. The highest prediction is $5,100 per ounce.

The major concern among analysts was the US Federal Reserve's response to inflation data, with 10 out of 16 respondents pointing to this as their main worry.

Geopolitical tensions and Beijing's dedicated gold purchases were also mentioned by some analysts, but these concerns are seen as less significant compared to the Fed's actions.