Gold Price Forecast Sees $5,000 Target by End of 2026

The price of gold is expected to surge in the coming years, driven by central banks' demand for reserve diversification. According to investment banks, gold could test $5,000 an ounce by the end of 2026, implying a 10% gain from current levels.

RBC Capital Markets has joined the bullish outlook, projecting a year-end price of $4,929 and $5,296 in 2027. This aligns with Goldman Sachs and State Street Investment Management's predictions of $4,900 and $5,000 respectively.

The increased demand for gold is countering concerns about US monetary tightening following strong labor data and a hawkish Federal Reserve stance. Central banks are buying gold to hedge against US Treasuries, whose long-end yields rose to multi-year highs last month.