Gold Surges to Record Highs, Banks Predict $4,000 by 2026
Gold prices have surged to record highs, with several leading investment banks, including Goldman Sachs and Deutsche Bank, raising their forecasts. The precious metal has risen over 50% this year and nearly doubled since the start of 2024.
Goldman Sachs has significantly increased its gold price target to a range of $3,700 by the end of 2025, with a potential rise to $4,000 by mid-2026. Other banks, such as Morgan Stanley, UBS, and Commerzbank, have also revised their projections, predicting prices close to $4,000 per ounce by 2026.
Investors are turning to gold as a safe haven due to global economic volatility and uncertainty. Political issues in France and the US, along with Japan's new pro-stimulus Prime Minister, have contributed to gold's price increase. Markets are worried about persistent high deficits and out-of-control fiscal policies in many countries. Ballooning sovereign debt and fears of currency debasement are further driving gold's price up. Additionally, lower interest rates, as hinted by Federal Reserve Chair Jay Powell, are also fuelling gold's rally.
Gold prices broke through the $4,000 per troy ounce barrier for the first time in history on Wednesday. Investment banks' revised forecasts suggest that gold's rally may continue, with many predicting prices close to or above $4,000 by 2026. Investors are seeking refuge in gold due to global economic uncertainties and political impasses.
