A banking giant is predicting that the gold rally is likely to continue into 2026, with the metal hitting new highs.
Specifically, the commodity could soar past $5,000 per ounce by the end of 2026, driven primarily by strong buying from central banks, especially in emerging-market economies, according to J.P. Morgan Private Bank.
Alex Wolf, the firm’s global head of macro and fixed income strategy, forecasts that gold could reach between $5,200 and $5,300 per ounce. If the highest target is achieved, it would imply a roughly 27% increase from the metal’s current value of $4,143.
Wolf attributed the anticipated surge to growing demand for gold as a store of value and diversification tool among central banks, particularly in emerging markets.
Increasing central bank purchases
Central bank purchases have been a key driver behind gold’s remarkable rally over the past two years, with the metal reaching record highs above $4,380 per ounce in October before a recent pullback.
Despite slightly lower purchases amid rising prices, Wolf expects central banks to keep building gold reserves. The World Gold Council reports they added 634 tonnes through September 2025, well above pre-2022 levels.
Notably, China has been a major contributor to this trend, seeking to reduce its dependence on U.S.-centric financial markets.
At the same time, the World Gold Council projects that central banks will buy between 750 and 900 tonnes of gold in 2025, further driving demand for the precious metal.
It’s worth noting that gold has regained bullish momentum after briefly dipping below the $3,000 mark, climbing to its highest level in nearly three weeks amid expectations of a December Fed rate cut and progress toward ending the U.S. government shutdown.
Key economic and financial data, including the non-farm payrolls report, were delayed by the shutdown. With government operations set to resume, investors expect greater clarity on the U.S. economic outlook and the Federal Reserve’s next policy moves.
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