Gold prices forecast to surge 30% next year amid flight to safety

SEATTLE (Scrap Monster): Gold prices slipped as investors booked profits and turned cautious ahead of next week's US Federal Reserve meeting. However, the World Gold Council stated that prices could rise by between 15% and 30% in 2026.

Gold futures slipped 0.3% to $4,220.10 per ounce, while spot gold retreated 0.3% to $4,190.13 an ounce at the time of writing.

"With investors a bit cautious ahead of the FOMC (Federal Open Market Committee) meeting, the market is largely pricing that the Fed will cut by 25 basis points… What the market needs now is a fresh trigger for (gold) prices to move higher," ANZ commodity strategist Soni Kumari said.

Kumari highlighted ongoing profit-taking and added that any slide toward $4,000 would likely attract new buyers, given gold's strong fundamental backing.

Meanwhile, the World Gold Council (WGC) said investment demand, particularly via gold exchange-traded funds (ETFs), would remain a key driver, offsetting weakness in other areas such as jewellery or technology.

"The combination of falling yields, elevated geopolitical stress and a pronounced flight-to-safety would create exceptionally strong tailwinds for gold, supporting a sharp move higher. Under this scenario gold could surge 15-30% in 2026 from current levels," the WGC report said.

Courtesy: www.uk.finance.yahoo.com