OCBC Raises 2026 Gold Forecast To US$5,600 Amid Stronger‑than‑expected Momentum
KUALA LUMPUR, Jan 26 (Bernama) -- Gold prices are set for an upward revision, with the forecast raised to US$5,600 per ounce by the end of 2026, up from the previous estimate of US$4,800, reflecting recent developments and stronger‑than‑anticipated persistence rather than a reassessment of the underlying narrative, said OCBC Group Research.
OCBC Group Research revised its forecast of gold prices to US$5,600 per ounce by end-2026, upward, reflecting recent developments and stronger-than-anticipated persistence rather than a reassessment of the underlying narrative.
Its foreign exchange strategist, Christopher Wong, said rising government debt burdens, geopolitical concerns and policy unpredictability have accelerated a structural re-rating of gold’s role in investment portfolios.
“What has evolved is the degree of allocation rather than the rationale for holding gold.
“Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral and reliable store of value asset that also provides diversification across a wider range of macro regimes,” he said in a research note today.
Gold has extended its advance sharply in recent weeks, pushing prices to all‑time highs above US$5,000 per ounce amid broad market optimism and safe‑haven demand.
Wong said the underlying drivers of the gold uptrend remain largely unchanged, as geopolitical uncertainty continues to act as structural support rather than episodic, one‑off backing, even as individual flashpoints de‑escalate.
“Recent developments, ranging from geopolitical tensions in Venezuela and Greenland to renewed US policy unpredictability, reinforced the broader theme of fragmentation, sanctions risk and policy volatility,” he said.
He noted that monetary conditions remain an important pillar, with policy broadly tilted toward accommodation despite periodic market reassessments of Federal Reserve easing.
While momentum has clearly strengthened, Wong anticipated that gold’s higher price level may see some sensitivity to near‑term macro repricing, particularly around real yields and US dollar dynamics.
“As such, while the medium-term outlook remains constructive, gold may also be subject to greater two-way volatility,” he added.
-- BERNAMA