Gold Prices Soar on Central Bank Purchases and Economic Uncertainty
Gold prices have rebounded by 13% over the past month, reaching $4,628 per ounce on August 26. This surge has led to a significant increase in gold price predictions for the end of 2026.
Several financial institutions and banks have recently revised their forecasts for gold, with many maintaining a positive outlook due to ongoing support from central-bank purchases, interest-rate trends, and persistent global economic risks.
Bernard Dahdah, precious metals analyst at Natixis, believes that gold prices are on track toward $5,000 an ounce after months of correction. He attributed the latest rally to weaker economic data prompting markets to reassess interest-rate expectations.
Dahdah also mentioned the U.S. Treasury's plans to double its purchases of 10- and 30-year bonds, which has increased demand for gold as a hedge against market instability. As a result, he raised his year-end gold price forecast to $5,000 an ounce, up from his previous target of $4,600.
Citigroup and Morgan Stanley have also issued new gold predictions, with Citigroup raising its zero-to-three-month gold price target to $4,800 an ounce and Morgan Stanley expecting prices to rise above $5,000 an ounce in 2027. However, the bank warned that the rally is likely to remain volatile.