(Mike Maharrey, Money Metals News Service) With gold scaling record highs on what feels like a daily basis, mainstream financial analysts are scrambling to raise their price forecasts.
Goldman Sachs recently upped its 2026 price projection to $4,900. Not to be outdone, Bank of America has now raised its 2026 forecast to $5,000 an ounce.
Gold cracked the $4,000 level on October 8. It then quickly climbed to over $4,100.
Gold has gained over 52 percent this year. Going back to January 2024, the price of yellow metal has surged by over 95 percent.
Bank of America raised its price target for next year from $4,400 to $5,000 with a $4,600 average, citing “unorthodox” policies in Washington, D.C.
“The White House’s unorthodox policy framework should remain supportive for gold given fiscal deficits, rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around percent.”
BoA analysts said the higher price should continue to drive investment demand into next year.
“Looking into 2026, a 14 percent increase of investment demand – similar to what we have seen this year – could lift gold to $5,000/oz.”
Despite the optimistic price forecast, the Bank of America note did caution that we could see a near-term correction.
The big bank also increased its silver forecast, projecting $65 silver in 2026.
A mining CEO, Randy Smallwood, told Bloomberg TV that the BoA forecast was more than reasonable, and that might be just the beginning.
“I’m confident that we will see gold over $5,000 within the next year. It’s a trajectory that could easily put it up to $10,000 an ounce before the end of the decade. It wouldn’t surprise me at all.”
Smallwood said the surging gold price is reflecting problems with the dollar.
“It’s the measuring stick that we’re using. It’s the U.S. dollar that we’re all seeing — that we’re all concerned about in terms of long-term strength.”
It’s not just the dollar. Gold is setting records in every major currency. This reflects growing shakiness in the fiat money system. Real money – gold – is showing its metal (pun intended).
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
