Gold price prediction: Gold rate forecast for 2026 is out, experts hint at risk of major drop in gold price

Gold has risen more than 70 per cent this year, its biggest annual gain since 1979, as investors flock to safe-haven assets amid geopolitical tensions and with expectations that the U.S. Federal Reserve will continue to ease monetary policy. Gold broke above $4,500 ⁠an ounce for the first time on Wednesday while silver and platinum also marked new record highs, as safe-haven demand and expectations of further U.S. rate cuts next year fuelled speculative interest in precious metals. Spot gold was up 0.1 per cent ‌at $4,493.76 per ‌ounce, after marking a record high of $4,525.19 earlier in the session. U.S. gold futures for February delivery climbed 0.3 per cent ‌to $4,520.00. U.S. President Donald Trump said on Tuesday he wants the next Fed chairman to lower interest rates if markets are doing well. Non-yielding assets such as gold tend to do well in a low-interest-rate environment, with ‍traders currently pricing in two rate cuts next year.

"The lack of any bearish factors and strong momentum, all backed ​by solid fundamentals, which include continued central bank buying, a ​falling U.S. dollar and some level of haven demand," is supporting gold, said Fawad ‌Razaqzada, market analyst at ‍City Index and FOREX.com.

"Other base metals like copper have been climbing, ‍which is providing support for the whole commodities complex in terms ‌of metals," Fawad ‌Razaqzada said.


"The ⁠risk of a major drop in the gold price would seem largely linked to a slowing of outright gold buying, such as by emerging market central banks," analysts at Societe Generale said in a note. "Barring such an event, investor positions suggest that the extraordinary surge in gold prices is likely to continue, supporting our Commodities strategists' forecast ($5,000/oz by end-2026)," analysts at Societe Generale claimed.

Silver hit an all-time high of $72.70 and was last up 0.9 per cent at $72.09 an ounce, while platinum peaked at $2,377.50 before paring gains to stand 0.3 per cent higher at $2,282.70. Silver has surged more than 150 per cent year-to-date, outpacing gold on strong investment demand, its inclusion on the U.S. critical ‍minerals list ⁠and rising industrial use.

Palladium was down 2.5 per cent at $1,815.25, retreating after touching its highest in three years. Platinum and palladium, primarily used in automotive catalytic converters to reduce emissions, are up about 160 per cent and more than 100 per cent, respectively, year-to-date, on tight mine supply, tariff uncertainty, and a rotation from gold investment demand.

FAQs

Q1. What is current silver price?

A1. Silver hit an all-time high of $72.70 and was last up 0.9 per cent at $72.09 an ounce, while platinum peaked at $2,377.50 before paring gains to stand 0.3 per cent higher at $2,282.70.

Q2. How has Silver performed?

A2. Silver has surged more than 150 per cent year-to-date, outpacing gold on strong investment demand, its inclusion on the U.S. critical ‍minerals list ⁠and rising industrial use.