LONDON: Gold has made its biggest jump since the 1979 oil crisis in 2025 — with prices doubling in the last two years — a performance which might previously have meant forecasts of a big correction.
Yet a growing investor pool and factors ranging from US policy to war in Ukraine mean analysts at JP Morgan, Bank of America and consultancy Metals Focus now see bullion hitting USD5,000 per troy ounce in 2026. Spot gold prices reached a record USD4,381 in October, having never hit USD3,000 before March, driven by demand from central banks and investors with new participants ranging from stable coin issuer Tether to corporate treasurers.
BofA strategist Michael Widmer said expectations of further gains or portfolio diversification are driving the buying, with impetus from US fiscal deficits, efforts to narrow the US current account deficit and a weak dollar policy.
Philip Newman, managing director at Metals Focus, said further support stemmed from worries about US Federal Reserve independence, tariff disputes and geopolitics including war in Ukraine and Russia’s interaction with NATO countries in Europe.
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