Gold prices could climb as high as $6,000 an ounce in 2026, according to analysts surveyed by the London Bullion Market Association.
Bullion rose 2.7pc earlier on Tuesday to a fresh record of $4,888 an ounce, as Donald Trump arrived in Switzerland ahead of a closely watched speech to world leaders in Davos.
Gold ($4,888/oz) soars higher as Japanese bond market sells-off and EU holds firm against Trump
- Gold has rallied 2% overnight, touching record highs of $4,888/oz despite some profit taking in Gold ETFs.
- A safe-haven bid continues, with gold favoured over US Treasuries and Bitcoin which both sold off yesterday.
- The 10-year climbed to 4.3%, as funds shunned US government debt on continued erraticism from Trump.
- Danish pension fund Akademiker is selling $100m of US Treasuries in response to Trump’s move for Greenland.
- The dollar is ticking higher this morning, having been weak vs the Euro.
- The Japanese Yen has weakened to June 2024 levels amid a sustained sell-off in Japanese government debt.
- 10-year Japanese bond yields saw their sharpest jump since 2022, whilst 30-year yields climbed the most since 2003.
- PM Takaichi called a snap election on Monday and is calling for increased stimulus, raising fiscal concerns.
- Global bond markets have been selling-off through the post-Covid era, as traders price in higher deficits amid increased monetary stimulus
- Elsewhere, Bloomberg reports China is accelerating plans to boost bullion trading, with MoU between Hong Kong and Shanghai Gold Exchange planned to establish a central clearing system to boost liquidity.
- China seems to be looking to remove the LBMA’s authority in bullion trading, enticing ‘friendly’ countries to store and trade their gold via Shanghai.
- Hong Kong Gold Exchange daily gold turnover has climbed 22x to $2.9bn in 2025, vs $100m in 2010.
- Major themes to watch for gold:
- Escalating tensions between China-US and EU-US
- Continued erosion of Fed independence by the White House
- Further broadening of participation from Asian investors in gold markets, spearheaded by China
Of the 28 analysts surveyed, 22 expect gold to reach highs above $5,000 next year. Five see prices breaking through the $6,000 level, while one forecast a move as high as $7,000 an ounce.
Analysts said the bullish outlook is being driven by expectations of lower US interest rates, continued central bank diversification away from the dollar, and elevated geopolitical tensions.
