Gold Prices Seen Consolidating Through 2026 Before Potential Rise to $5,000

Gold prices are expected to consolidate at high levels through the remainder of 2026 before potentially rising to $4,600-$5,000 per ounce in the first half of 2027, according to ICICI Bank.

The bank's research report notes that gold has corrected sharply in September after gaining around 9% in August, with prices down nearly 8% during the month so far. This correction is attributed to a more hawkish repricing of US monetary policy amid persistent inflation concerns and stronger-than-expected labour market data.

However, ICICI Bank believes that these near-term pressures may not be enough to reverse the broader strength in bullion. The report points out that gold ETFs recorded $17.8 billion of inflows in August, while the People's Bank of China bought 20 tonnes of gold in August, its largest monthly purchase since October 2023.

Structural supports for gold include concerns over the long-term sustainability of US fiscal deficits and high public debt, continued central bank diversification away from US dollar-denominated assets, and gold's role as a portfolio hedge. The report notes that as global energy pressures ease, there is an increasing likelihood of bullion trading with an upside bias.