Gold is trading above $4,300, an all-time high for the precious metal. Gold price today is $4,365, up by 20% in the last one month. But will the gold price move higher?
If the analysts at major institutions are to be believed, there seems to be enough support for the gold to stretch higher from current levels.
Bank of America has set a higher target price for gold next year, predicting a 20% increase when gold was around $3,330 per ounce to $4,000 per ounce. On October 13, BofA raised its 2026 gold price forecast to $5,000.
On October 14, JPMorgan CEO Jamie Dimon emphasized the importance of gold in investors’ portfolios, citing the potential for the precious metal to double in price from its current highs.
Analysts at Goldman Sachs have predicted a $4,900 target on gold by the end of 2026.
HSBC has increased its 2025 gold price forecast to $3,355 per ounce from $3,215 due to geopolitical tensions, economic uncertainty, and a weakening U.S. dollar.
The fresh surge in gold prices in 2025 is due to US-China trade tensions and government shutdown concerns, with China accusing the US of panic over rare earth mineral controls, but expressing willingness to hold talks.
The fresh support for gold is also driven largely by US-China trade tensions and US rate cut hopes.
The non-yielding asset has gained over 66% year-to-date, driven by geopolitical tensions, aggressive rate-cut bets, central bank buying, de-dollarisation and robust ETF inflows.
US rate cuts, influenced by weakening labor market signs, have boosted non-yielding metals’ appeal, with investors fully pricing in 25 bps cuts at current meetings and possibly in December.
The geopolitical tensions also don’t seem to go away anytime soon. Trump and Putin agreed to another summit on Ukraine, while Western nations pressure Russia over oil sales, with Britain imposing sanctions on major Russian oil firms.
Meanwhile, the Treasury Department reported a $41 billion reduction in the U.S. budget deficit for the 2025 fiscal year, which could act as a headwind for gold prices.