Gold Set to Shine in 2026 as Banks Forecast Higher Prices and Steady Demand

Gold set for a 2026 rally: JPMorgan sees Gold averaging US$5,055/oz, Goldman expects strong central-bank buying; upside risk keeps investors watching.

CH
Colin Hay
·2 min read
Gold Set to Shine in 2026 as Banks Forecast Higher Prices and Steady Demand

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Global analysts and financiers remain confident that gold will continue its strong price increase run in 2026.

American multinational banking institution JPMorgan recently reported that there are no signs that the surge in buyer interest in gold—which saw the price of the precious metal climb as much as 55% in 2025—is slowing.

“While this rally in gold has not, and will not, be linear, we believe the trends driving this rebasing higher in gold prices are not exhausted,” said Natasha Kaneva, Head of Global Commodities Strategy at J.P. Morgan.

“The long-term trend of official reserve and investor diversification into gold has further to go.”

Overall, J.P. Morgan Global Research is forecasting prices to average approximately A$7,569 (US$5,055) per ounce by the final quarter of 2026, rising to around A$8,085 (US$5,400) per ounce by the end of 2027.

“Looking to 2026, we see around 585 tonnes of quarterly investor and central bank demand on average, comprising around 190 tonnes a quarter from central banks, 330 tonnes a quarter in bar and coin demand and 275 tonnes of annual demand from ETFs and futures, mainly front-loaded over next year,” Gregory Shearer, Head of Base and Precious Metals Strategy at J.P. Morgan, added.

Strong Central Bank buying

The multinational investment bank and financial services company Goldman Sachs has revealed it expects central bank gold buying to remain strong in 2026, averaging 70 tonnes per month.

In a recent commodity report, the company said that while it sees upside risk to its gold price forecast from a potential broadening of diversification to private investors, gold remains its single favourite long commodity.

The company also said there is potential for significant upside to its year-end gold price forecast of A$7335 (US$4,900) per ounce for 2026.

It noted that several investors have recently called for positive gold allocations

Some uncertainty

While financiers are confident the gold price remains on a positive trend, the World Gold Council (WGC) has added some caution.

“The gold price broadly reflects macroeconomic consensus expectations and may remain rangebound if current conditions persist. However, taking cues from this year, 2026 will likely continue to surprise,” the WGC recently reported.

“If economic growth slows and interest rates fall further, gold could see moderate gains. In a more severe downturn marked by rising global risks, gold could perform strongly. Conversely, a successful outcome from policies set by the Trump administration could accelerate economic growth and reduce geopolitical risk, leading to higher rates and a stronger US dollar, which may push gold lower.”

The WGC added that other factors, such as central bank demand and gold recycling trends, could also influence the market.

“Most importantly, gold’s role as a portfolio diversifier and source of stability remains key amid continued market volatility.”

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