Gold Prices Could Hit $5,000 by Year-End Amid Central Bank Buying

Gold prices could hit $5,000 by year-end as central banks continue to buy up gold reserves, according to Metals Focus.

Philip Newman, Managing Director of Metals Focus, expects gold to reach $5,000 an ounce by the end of 2026 due to strong support from central banks. The recent US rate hike and expectations of another one this year are unlikely to significantly hurt gold prices, as much of the impact has already been priced in.

Newman sees $4,300 an ounce as a strong support level for the metal and believes concerns around rising US debt levels will become increasingly important for investors. Central banks have been key buyers, making strong purchases in the second quarter and expected decent buying in the third quarter.