Gold Predicted to Hit $5,000 by Societe Generale in 2027

Societe Generale, a French bank, is forecasting gold prices to reach $5,000 an ounce in the second quarter of 2027. The prediction comes despite central banks entering a new monetary-tightening cycle.

The bank believes that interest-rate increases may not be sufficient to bring inflation under control, preserving gold's appeal as a portfolio-diversification and hedging asset.

Societe Generale is allocating 10% of its multi-asset portfolio to gold and another 10% to broader commodities in the fourth quarter. It also raised its equity allocation from 55% to 58%, while reducing its exposure to government bonds from 15% to 12%. The bank argued that the traditional portfolio comprising 60% equities and 40% bonds may no longer be best suited to the current economic environment.

The bank said gold is benefiting from a revival of the 'debasement trade,' as geopolitical fragmentation and mounting concerns over US fiscal and currency credibility drive investors toward assets capable of preserving value. Central banks continue to purchase gold while reducing their exposure to US Treasuries, reflecting a structural move to diversify reserves away from traditional US dollar-denominated assets.