Gold price outlook for 2026: Strong start to the year; experts see further gains

Gold prices moved higher on the first trading day of 2026, signaling continued investor interest in the metal. Spot gold rose by nearly 2% to around $4,397 per ounce. It had touched a record high in late December before slipping in the final days of 2025. US gold futures also posted gains, reflecting a positive mood in the market. Analysts said the rise came after a brief phase of profit booking. Investors returned to gold as concerns over global risks remained. Hopes of lower interest rates in the US also supported prices.

Market experts point to several reasons behind gold’s strength. Geopolitical tensions in different parts of the world have kept demand for safe assets high. At the same time, investors expect the US Federal Reserve to cut interest rates at least twice in 2026. Lower rates reduce the appeal of bonds and boost interest in gold. Lukman Otunuga, senior research analyst at FXTM, said precious metals started the year on a positive note. He added that investors are drawing confidence from global risks and expectations of easier US monetary policy in the months ahead.

Physical demand for gold has also shown signs of recovery. In major markets such as India and China, gold recently traded at a premium. This was the first time in about two months. A correction from record highs made prices more attractive for retail buyers. Central banks have continued to buy gold as well. Many countries are adding to their reserves to reduce exposure to currency risks. Analysts say this steady buying provides long-term support to gold prices and limits sharp falls.
Gold had a strong year in 2025, rising about 64%. This was its biggest annual gain since 1979. The rally was driven by US rate cuts, global political uncertainty, heavy central bank buying, and higher investment through exchange-traded funds. UBS analyst Giovanni Staunovo said gold prices could move higher in 2026. He sees a possible move toward $5,000 per ounce. He cited lower real yields, concerns about global growth, and uncertainty around US domestic policy. He added that both investors and central banks continue to prefer gold because it carries no counterparty risk.

Other precious metals have followed gold’s lead. Silver, platinum, and palladium posted strong gains early in the year. Silver had its best year ever in 2025 due to supply shortages and strong industrial demand. Platinum and palladium also rose sharply, though prices eased after traders booked profits.