RBC Sticks to Bullish Forecast for Gold Prices

RBC Capital Markets is sticking to its optimistic forecast for gold prices, predicting they will reach $4,929 an ounce by the end of 2026. The bank's analysts cited a return of investor demand and renewed buying by central banks as underlying drivers for the metal.

Gold has traded in a relatively narrow range between $4,500 and $5,000 an ounce this year, with RBC expecting that range to hold for the rest of 2026. Despite a prolonged period of weaker exchange-traded product holdings, gold-backed ETFs have attracted over 100 tonnes of net inflows so far this year.

The bank pointed to concerns over deficits, monetary and fiscal policy, record government debt hitting $40 trillion, de-dollarisation, diversification, and debasement-driven flows as supports for elevated gold prices. RBC also highlighted a negative correlation between gold prices and Donald Trump's approval rating during his second term.