Gold Bulls Grow Louder Amid Hawkish Fed and Strong Labour Data
Gold is set to test $5,000 an ounce by the end of 2026 as central banks continue to diversify their foreign reserves, according to investment banks.
Despite strong labour data and a hawkish tone from the Federal Reserve, the bullish chorus on gold is growing. RBC Capital Markets has joined Goldman Sachs and State Street Investment Management in forecasting significant gains for the yellow metal.
RBC predicts that gold will reach $4,929 by year-end, while Goldman Sachs and State Street expect it to climb to $4,900 and $5,000 respectively.
The projections imply at least a 10% gain from current levels. The inverse correlation between gold and borrowing costs is breaking down amid concerns over fiscal discipline and relentless bond sales by the Trump administration.