Wells Fargo Reiterates Positive Outlook for Precious Metals Amid Geopolitical Uncertainties
Wells Fargo's Investment Institute has reaffirmed its positive outlook for precious metals, despite gold experiencing a challenging five months. According to the firm, Asian investors and central banks have maintained their interest in gold, with prices expected to gain an additional 11% by year-end. The analysts pointed out that international demand remained resilient through the first half of 2026, driven by geopolitical and market uncertainties.
Wells Fargo noted that global spot price was down 5% for the first half of the year, but Asian investors have been persistent buyers, with gold prices up 13% when measured during Asia's trading hours. The firm also cited a rebound in central bank purchases during the second quarter, driven by these same uncertainties.
Looking ahead, Wells Fargo sees continued gains for gold, but warns that its path higher will be uneven due to international demand being challenged by U.S. monetary headwinds. The firm has revised its 2026 and 2027 year-end gold targets lower to $4,900-$5,100 and $5,400-$5,600 per troy ounce, respectively.