Gold breaches $4,500 for first time in international markets. How soon in 2026 can it hit $5,000?

Gold prices hit a fresh lifetime high on Wednesday, breaching the $4,500 an ounce level due to safe-haven demand, central bank buying and hopes of US Federal Reserve's policy rate cut keep the prices on boil. While the trade remained range-bound ahead of the Christmas break that begins later today, the yellow metal breached the psychological mark to touch a high of $4,525 around 08:04:36 AM CT (7:35 pm).

The domestic gold prices also scaled a fresh peak of Rs 1,38,676 per 10 gram, gaining Rs 800.

Anuj Gupta, Director at Ya Wealth Global Research, predicts the yellow metal will reach the $5,000 mark by Diwali, extending its dream run on economic uncertainties, global central bank buying, and its growing appeal as an investment option rather than just a hedging instrument. A weaker dollar will aid the bullion rally while a weaker rupee will make returns more lucrative for the domestic investors, Gupta said.


In October, Bank of America raised its price forecasts for both gold and silver to $5,000 an ounce in 2026.

Also Read: BofA hikes gold’s 2026 target to $5,000; sees silver testing $65 but with this caution

The domestic gold prices have outperformed their overseas peers aided by a weaker rupee against the US dollar. In India, the prices have grown by a staggering 80% or Rs 61,000 per 10 gram.

Gold trading strategy

Gupta recommends a 'Buy' on MCX February gold futures around Rs 1,20,000-1,25,000 with a stop loss of Rs 1,05,000 and a target of Rs 1,50,000-1,65,000.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)