HSBC has raised its average gold price forecasts for the next two years, citing heightened geopolitical risks and strong investor demand for bullion, as Reuters first reported.
The bank now expects gold to average $3,215/oz in 2025 and $3,125/oz in 2026, up from previous estimates of $3,015 and $2,915, respectively.
The updated outlook reflects a bullish view on gold’s role as a safe-haven asset amid global uncertainty.
Spot gold reached a record high of $3,500.05 an ounce in late April. The metal was trading at $3,348.50 Wednesday morning.
“We anticipate a wide and volatile trading range of $3,600-3,100/oz for the rest of the year and year-end prices of $3,175/oz for 2025 and $3,025/oz for 2026,” the bank said in a note on Tuesday.
HSBC analysts noted that central bank gold purchases will moderate on further rallies above $3,300 and could increase should gold correct nearer to $3,000.
On the physical front, the bank said further gold price gains above $3,500 could lead to reduced demand in the jewellery, coin and small bar markets, particularly in economies such as India and China.
Goldman Sachs recently echoed a similarly bullish stance, forecasting gold to reach $3,700 by year-end and $4,000 by mid‑2026, with potential upside to $4,500 in extreme risk scenarios.
Goldman also expects gold to continue outperforming silver, which is under pressure from weakening industrial demand, particularly in China’s solar sector.
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HSBC has raised its average gold price forecasts for the next two years, citing heightened geopolitical risks and strong investor demand for bullion, as Reuters first reported.
The bank now expects gold to average $3,215/oz in 2025 and $3,125/oz in 2026, up from previous estimates of $3,015 and $2,915, respectively.
The updated outlook reflects a bullish view on gold’s role as a safe-haven asset amid global uncertainty.
Spot gold reached a record high of $3,500.05 an ounce in late April. The metal was trading at $3,348.50 Wednesday morning.
“We anticipate a wide and volatile trading range of $3,600-3,100/oz for the rest of the year and year-end prices of $3,175/oz for 2025 and $3,025/oz for 2026,” the bank said in a note on Tuesday.
HSBC analysts noted that central bank gold purchases will moderate on further rallies above $3,300 and could increase should gold correct nearer to $3,000.
On the physical front, the bank said further gold price gains above $3,500 could lead to reduced demand in the jewellery, coin and small bar markets, particularly in economies such as India and China.
Goldman Sachs recently echoed a similarly bullish stance, forecasting gold to reach $3,700 by year-end and $4,000 by mid‑2026, with potential upside to $4,500 in extreme risk scenarios.
Goldman also expects gold to continue outperforming silver, which is under pressure from weakening industrial demand, particularly in China’s solar sector.