UPDATE: Gold prices just skyrocketed past $4,500 per troy ounce, signaling a historic rally that analysts predict will extend into 2026. This surge, driven by a weaker dollar and strong central bank demand, marks a significant shift in the gold market as it closes 2025 at all-time highs.
As of today, gold is trading around $4,490, having increased more than 70% this year alone—its best performance since 1979. Major banks and market strategists are confident that this bull run is not merely a reaction to crises but a structural change in the market.
According to Farah Mourad, a market analyst at IG, “Gold doesn’t need a crisis to rise in 2026. It simply needs the world to behave the way it has been: elevated debt, policy uncertainty, fragile alliances, and a dollar that no longer dominates as it once did.” Mourad emphasizes that in such an environment, gold absorbs fear rather than chasing it.
Analysts are wary, however, of potential risks. A robust rebound in the U.S. dollar or a shift towards risk-on sentiment could slow gold’s advance. Yet, investor positioning in gold remains balanced, indicating the trade is not overcrowded.
Bank forecasts support this outlook, with Ewa Manthey, a commodities strategist at ING, stating, “We see gold prices hitting more record highs in 2026.” Manthey points out that factors such as potential changes in Federal Reserve leadership could push for lower interest rates, further supporting gold prices. She noted, “We expect the downside to be limited as any weakness will likely attract renewed interest from both retail and institutional buyers.”
Wall Street giant Goldman Sachs projects that gold could climb to $4,900 per ounce by December 2026. This year’s gold surge has also positively impacted other precious metals. Spot silver is trading around $72 per ounce, up 147% year-to-date, while platinum has soared to about $2,342, reflecting a 159% increase.
As gold continues its upward trajectory, its influence on the market landscape becomes increasingly significant. Investors are urged to stay vigilant as these developments unfold, particularly given the potential for ongoing fluctuations in monetary policy and economic conditions.
Stay tuned for further updates as this story develops.
