Gold Price Predicted to Hit $5,000 as Fed Outlook Softens

Gold prices could reach $5,000 per ounce by the end of 2026 due to a softer outlook from the US Federal Reserve and increasing demand in India. According to Harshal Barot, Senior Consultant-South Asia and Middle East at Metals Focus, gold has structural support around the $4,000 level.

Barot notes that the market is questioning the Fed's ability to raise interest rates aggressively after weaker US employment data and volatility in currency and bond markets. Even if the Fed raises rates once this year, he does not see it as the beginning of a broader monetary tightening cycle.

The Indian festive and wedding season is expected to drive demand for gold, with sentiment among retailers and manufacturers having improved significantly. While higher prices have put pressure on jewellery volumes, order volumes seen by manufacturers are higher than last year's, with some describing them as the strongest since Covid.