HSBC Raised Gold Price Forecast for 2025 and 2026

SEATTLE (Scrap Monster): HSBC has raised its average gold price forecasts for the current as well as the following year. This is primarily on account of heightened geopolitical risks and strong investor demand for bullion.

The bank now projects that the average price of gold will be $3,215 per ounce in 2025 and $3,125 per ounce in 2026. This is more than the bank's previous projections for 2025 and 2026, which were $3,015 and $2,915 per ounce, respectively. The bullish outlook on gold's function as a safe-haven asset amid escalating geopolitical tensions worldwide is reflected in the higher gold price expectations.

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Gold is expected to trade in a broad and volatile range of $3,600-3,100/oz for the remainder of the year, according to a note issued by HSBC on Tuesday. According to the report, central bank gold purchases are expected to rise if gold prices recover to about $3,000 an ounce, but they might also decline if prices continue to rise above $3,300 an ounce.

Reduced demand for gold in the physical jewelry, coin, and small bar sectors could result from a further increase in the price of gold above $3,500 per ounce, particularly in key consumer countries like China and India, HSBC noted.

Similar predictions were recently made by Goldman Sachs, which estimated that gold prices would reach about $3,700 per ounce by the end of 2025 and $4,000 per ounce by the middle of 2026.