Can gold hit US$5,000? Wall Street turns bullish despite US job growth fuelling rate fears
Gold will probably test US$5,000 an ounce by the end of 2026, as demand from central banks diversifying their foreign reserves remains strong, countering fears of US monetary tightening after strong labour data and a hawkish tone from the Federal Reserve, according to investment banks. RBC Capital Markets is the latest to join the bullish camp, forecasting US$4,929 by year-end and US$5,296 in…
Wall Street's sentiment is shifting positively towards gold, with the metal potentially testing the US$5,000 per ounce mark by the year's end, despite concerns over US monetary tightening following strong labor data and a hawkish stance from the Federal Reserve. Investment banks, including RBC Capital Markets, Goldman Sachs, and State Street Investment Management, are projecting significant gains for gold.
Central banks are increasing their gold purchases, aiming to hedge against US Treasuries, whose yields have reached multi-year highs. This surge in gold demand is driven by a focus on fiscal discipline and a strategic monetary hedge, rather than traditional factors like GDP growth and corporate margins. Gold's price dipped slightly on Monday, but its momentum remains strong, supported by central bank buying and a drop in speculative positions.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
