GOLD retreated more than 2 per cent yesterday amid a broader market sell-off, but the recent volatility may be temporary as Wall Street analysts see the precious metal reaching new highs in 2026.
Gold futures hovered around $4,900 as Asian markets closed for the Chinese New Year. Meanwhile, Iran and the US reached a “general agreement” on a possible nuclear deal, easing tensions in the Middle East.
“Despite short-term softness, the structural drivers supporting gold remain firmly in place,” Ole Hansen, head of commodity strategy at Saxo Bank, said.
The strategist highlighted central bank buying, geopolitical fragmentation, and portfolio diversification as key factors driving gold’s safe-haven appeal amid concerns over currency debasement.
“Together, these forces suggest that, although corrections are inevitable after parabolic advances, the broader bull trend remains intact,” wrote Hansen.
Goldman Sachs analysts reiterated a significant upside risk to their forecast for gold of $5,400 per troy ounce by the end of 2026.
“We see upside risk to our $5,400 December 26 forecast from private sector diversification,” analyst Lina Thomas and her team said in a note earlier this month.
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