Gold Prices May Soar to $5,000/Oz in 2027 Amid Easing Dollar and US Yields

ICICI Bank has forecast that gold prices could reach $4,600-$5,000 per ounce in the first half of 2027 as the US dollar and US real yields ease. The bank attributes the potential rise to ongoing investment demand, central bank purchases, and gold's role as a hedge against geopolitical, financial, and policy uncertainty.

The recent correction in gold prices after gaining around 9% in August has been attributed to a more hawkish repricing of US monetary policy, persistent inflation concerns, higher oil prices, and stronger-than-expected labour market data. However, ICICI Bank believes that these near-term pressures may not be sufficient to reverse the broader strength in bullion.

The bank expects domestic gold prices in India to remain largely driven by global bullion prices, with rupee movements adding another source of volatility. Domestic jewellery demand remains constrained by elevated gold prices, but wedding demand has remained relatively resilient.