Bank of America Projects Gold to Average $4,538/oz in 2026, Peak at $5,000

As demand rises along with global factors, the price may reach as high as $5,000 per ounce by 2026. According to a report by Bank of America, because of improved conditions, the average price for 2026 is estimated to be $4,538 an ounce, but it could go as high as $5,000.

The reason for the strength of gold globally is the possibility of interest rate cuts in the US in December. As per the information received, the price of gold in the international market is running around $4,160 per ounce. Its impact is also showing up in MCX. The price of gold for the December 5 contract jumped 0.87 percent to ₹124,935.

According to a BofA report, gold still has room for further upside, as rising institutional investment remains weak. If global factors remain unchanged, prices will rise even faster. These factors include rising government debt levels, higher inflation, falling interest rates, and the impact of unconventional US economic policies.

Gold prices have risen by nearly 50 percent in the past year due to tariffs and inflation. Goldman Sachs, one of the world's largest investment banks, also says that gold could reach $5,000 per ounce by next year.

Gold prices in the national capital, Delhi, rose by ₹3,500 to ₹128,900 per 10 grams on Tuesday amid fresh buying by local jewelers and retailers for wedding ceremonies. Silver also rose by Rs 5,800 to Rs 1,60,800 per kg.

Both precious metals had been declining in the domestic market for the past three days. Jewellery traders said that demand from local jewellery traders has increased due to the wedding season. The weak US dollar against major currencies also boosted demand for safe-haven assets.

According to analysts, the rise in prices was due to the weak US dollar and rising expectations of interest rate cuts following soft comments from Federal Reserve officials. In the foreign market, gold fell 0.09 percent to $4,131.09 per ounce. Silver fell 0.40 percent to $51.15 per ounce.