Gold Prices May Soar to $5,000/oz by Early 2027: ICICI Bank

Gold prices may rise to $4,600-$5,000 per ounce in the first half of 2027 as US real yields and the dollar ease, according to ICICI Bank. The bank expects gold to trade in the $4,200-$4,600 range for the rest of 2026 with a marginal upside bias in H1 2027.

The medium-term outlook remains supported by investment demand, continued central bank purchases, and demand for gold as a hedge against geopolitical, financial, and policy uncertainty. ICICI Bank attributed the recent correction to a more hawkish repricing of US monetary policy amid persistent inflation concerns, higher oil prices, and stronger-than-expected labour market data.

Globally, gold ETFs recorded $17.8 billion in inflows in August, while the People's Bank of China bought 20 tonnes of gold in August. Concerns over long-term sustainability of US fiscal deficits and high public debt are expected to remain structural supports for gold prices.