Gold continues its impressive upward trajectory, with fresh forecasts suggesting the precious metal could hit $4,500 per ounce by 2026. Analysts credit this outlook to expectations of U.S. interest-rate cuts, a weaker dollar, and growing demand from central banks and investors. According to Pakistan Today, spot gold prices have already climbed sharply, reaching levels not seen since October, indicating renewed bullish sentiment across global markets.
Recent Market Performance
Gold prices surged on Monday, with spot gold rising to $4,255.04 per ounce, while U.S. futures for February delivery increased to $4,290.40 per ounce. This upward pressure reflects broader optimism that economic conditions are turning favorable for gold buyers. A weakening U.S. dollar—hovering near a two-week low—has made gold more accessible to investors using other currencies, intensifying international demand.
UBS analyst Giovanni Staunovo highlighted that the latest price movements align with expectations of easing monetary policy:
“Gold is expected to extend its strong rally into next year, with analysts projecting that prices could reach $4,500 an ounce in 2026.”
What’s Driving the Bullish Forecast?
1. Possible U.S. Interest-Rate Cuts
Investor sentiment is strongly shaped by growing expectations of a U.S. Federal Reserve rate cut, possibly as early as December. Lower interest rates traditionally boost gold, as the opportunity cost of holding the metal decreases.
2. Weaker U.S. Dollar
The dollar’s decline enhances gold’s affordability and demand across international markets. Since gold is priced in dollars, a weaker dollar typically prompts greater global buying.
3. Central Bank and Institutional Buying
Major central banks have been steadily increasing their gold reserves, strengthening structural demand. Institutional investors also view gold as a hedge against inflation and geopolitical instability, adding to its upward momentum.
4. Uncertainty in Global Markets
Concerns about global economic slowdowns, inflationary pressures, and geopolitical risks continue pushing investors toward safe-haven assets like gold.
Global Forecasts Support the Trend
Several major financial institutions share this optimistic outlook. Deutsche Bank recently revised its 2026 gold forecast to $4,450 per ounce, with trading expected to range from $3,950 to $4,950. Meanwhile, analysts at Goldman Sachs anticipate even stronger gains, projecting that gold could reach $4,900 per ounce if current trends persist. Warren Buffett Unveils Major Updates in Thanksgiving Letter 2025
These forecasts align with broader market expectations that 2026 could be one of the strongest years for gold in decades.
Impact on Investors and Buyers
For International Investors
The upward trend strengthens gold’s position as a long-term hedge against inflation, currency devaluation, and financial instability. Investment portfolios tilted toward commodities stand to benefit significantly if forecasts materialize.
For Pakistani Buyers
Gold prices in Pakistan are heavily influenced by both global gold rates and fluctuations in the rupee. If gold reaches $4,500/oz, local gold rates in Pakistan—particularly per tola—could rise sharply, adding pressure on buyers and the jewellery market.
Conclusion
The new forecast suggesting gold could reach $4,500 per ounce in 2026 highlights a strong and sustained bullish outlook. With supportive macroeconomic factors—including expected interest-rate cuts, a softer dollar, and robust central-bank demand—the precious metal appears set for another year of growth. For investors and markets alike, 2026 could mark a historic milestone in gold’s long-term upward trend.
