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Gold’s rally took it to all-time highs just shy of $5,600 on January 29 before prices plunged to $4,403 an ounce on Monday, with the meltdown and profit-taking sparked by U.S. President Donald Trump’s nomination of Kevin Warsh to be the next Federal Reserve chair.
Analysts believe the factors driving gold – including geopolitical risks, robust central bank buying, concerns about Fed independence, rising U.S. debt, trade uncertainty, and de-dollarisation – will continue to support the safe-haven asset in 2026.
“Gold’s thematic drivers remain positive and we believe investors’ rationale for gold (and precious) allocations will not have changed,” analysts at Deutsche Bank said.
Analysts expect central banks to keep adding to their gold reserves as they diversify and reduce reliance on the U.S. dollar, although jewellery demand is likely to contract further in key Asian regions due to high prices.
Analysts ramp up gold forecasts as global uncertainties mount