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Gold to Hit $5,000 Amidst Global Turmoil
8 Jan
Summary
- Gold may reach $5,000 per ounce in early 2026.
- HSBC forecasts high volatility and potential price drops.
- Gold prices surged 64% in the past year.
Gold prices are poised for a significant rally, potentially reaching $5,000 per ounce in the first half of 2026. This surge is attributed to mounting geopolitical uncertainties and increasing global debt levels. HSBC projects a wide trading range for gold in 2026, indicating high volatility ahead.
Despite the upward price revision, HSBC has also tempered expectations by lowering its average 2026 price forecast to $4,587 from $4,600. The bank warns that a sharp correction could occur later in the year, particularly if geopolitical risks diminish or if the U.S. Federal Reserve alters its interest rate policy by ceasing rate cuts.
Looking further ahead, HSBC has increased its average price forecasts for gold for both 2027 and 2028, signaling continued optimism for the precious metal. This comes after spot gold experienced a remarkable 64% annual gain in 2025, its most substantial increase since 1979.
