HSBC on Friday projected that gold prices could surge to $5,000 an ounce in the first half of 2026, driven by geopolitical risks , economic uncertainty , and a wave of new market participants .
As per news agency Reuters, the bank also raised its average gold price forecast for 2025 to $3,455 per ounce from $3,355, while its 2026 average estimate was lifted to $4,600 per ounce from $3,950.
“Unlike previous rallies, we believe many of these new buyers are likely to stay in the gold space — even after the rally ends — not so much for appreciation necessarily as for gold’s diversification and ‘safe haven’ qualities,” HSBC said in a research note.
The bank highlighted that robust central bank purchases, rising ETF inflows , expectations of US rate cuts , and tariff-related uncertainties have fueled the current rally.
Spot gold recently breached the $4,300 mark, marking its strongest weekly gain since December 2008.
HSBC expects prices to remain elevated through early 2026, although volatility and some moderation could occur in the second half of the year.
“The bull market is likely to continue to press prices higher for 1H’26 and we could very well reach a high of $5,000/oz some time in 1H 2026,” the note added.
Other major banks share a similarly bullish outlook. Bank of America and Societe Generale have also forecast gold reaching $5,000 per ounce next year, while ANZ predicts a peak near $4,600 by June 2026, with gradual easing thereafter, reported ET.
Analysts attribute the rally to continued safe-haven demand amid geopolitical tensions, economic policy uncertainty, and expectations of a weakening US dollar.
The sustained demand is expected from central banks, institutional funds, and retail investors seeking diversification and protection against economic volatility.
HSBC and other analysts underscore that gold’s appeal is not just speculative but rooted in its long-term store-of-value and risk-hedging qualities, reinforcing its role as a key asset amid global uncertainties, as per Reuters.
Gold’s trajectory in 2025 and 2026 is being closely watched by markets worldwide, with forecasts indicating that the metal is poised to stay above $4,000 an ounce for the foreseeable future, even as short-term fluctuations occur.
As per news agency Reuters, the bank also raised its average gold price forecast for 2025 to $3,455 per ounce from $3,355, while its 2026 average estimate was lifted to $4,600 per ounce from $3,950.
“Unlike previous rallies, we believe many of these new buyers are likely to stay in the gold space — even after the rally ends — not so much for appreciation necessarily as for gold’s diversification and ‘safe haven’ qualities,” HSBC said in a research note.
The bank highlighted that robust central bank purchases, rising ETF inflows , expectations of US rate cuts , and tariff-related uncertainties have fueled the current rally.
Spot gold recently breached the $4,300 mark, marking its strongest weekly gain since December 2008.
HSBC expects prices to remain elevated through early 2026, although volatility and some moderation could occur in the second half of the year.
“The bull market is likely to continue to press prices higher for 1H’26 and we could very well reach a high of $5,000/oz some time in 1H 2026,” the note added.
Other major banks share a similarly bullish outlook. Bank of America and Societe Generale have also forecast gold reaching $5,000 per ounce next year, while ANZ predicts a peak near $4,600 by June 2026, with gradual easing thereafter, reported ET.
Analysts attribute the rally to continued safe-haven demand amid geopolitical tensions, economic policy uncertainty, and expectations of a weakening US dollar.
The sustained demand is expected from central banks, institutional funds, and retail investors seeking diversification and protection against economic volatility.
HSBC and other analysts underscore that gold’s appeal is not just speculative but rooted in its long-term store-of-value and risk-hedging qualities, reinforcing its role as a key asset amid global uncertainties, as per Reuters.
Gold’s trajectory in 2025 and 2026 is being closely watched by markets worldwide, with forecasts indicating that the metal is poised to stay above $4,000 an ounce for the foreseeable future, even as short-term fluctuations occur.
You may also like
Best time of day to spray weed killer or risk killing plants
October is your 'last chance' to ensure lush, green lawn with 3 simple steps
Wooden floors will be shiny and dust-free longer if you use 1 natural item cleaner loves
Christian Horner lands billionaire backers as 12th F1 team eyed and comeback date emerges
Thousands of Indigenous people join a Rally in Itanagar demanding the implementation of the 46-year-old Anti-Conversion Act APFRA in Arunachal
