Gold Price Surge: Forecasts Point to $4,500 Per Ounce in 2026
October 4, 2025 – Gold reached record highs in 2025, with December futures contracts surpassing $3,900 per ounce for the first time, fueled by robust investor demand, positive market indicators, and considerable purchases by central banks globally, according to a recent report by Bloomberg.
This significant increase comes amidst ongoing concerns regarding potential trade conflicts during a second term for US President Donald Trump, coupled with rising American debt levels and growing anxieties about the independence of the US Federal Reserve, as noted by economic analysts.
In an interview with Sky News arabia Economy, economic analyst Mohamed Saad identified several key factors driving investors towards gold.”The decline in the US dollar to a more than three-year low, coupled with expectations of reduced American interest rates, alongside global geopolitical and commercial pressures, has prompted investors to view gold as an active investment tool, not merely a store of value,” Saad stated.
Demand for gold remains strong in traditional markets like India and China. The report highlights that Indian families hold approximately 25,000 tons of gold, exceeding the reserves held in the American Fort Knox warehouse more than fivefold.
Central bank gold purchases also reached unprecedented levels. Data from the world Gold Council reveals that central banks worldwide acquired over 1,000 tons of gold in 2024, now controlling roughly one-fifth of all gold ever mined. This trend reflects an effort to diversify away from the dollar and safeguard foreign exchange reserves.
Despite the benefits, gold ownership presents logistical challenges related to storage, security, and insurance, as well as price variations across different geographical markets, according to writer Roli Rashid, who spoke with Sky News Arabia Economy.
However,Rashid emphasized gold’s enduring role as a hedge against inflation,market volatility,and economic and political instability. Gold prices increased by 45% in 2025, a substantial rise compared to the 27% increase observed in 2024.
Looking ahead, Mohamed Saad anticipates that gold could climb above $4,500 per ounce in 2026. This projection is based on continued strong demand from investors, favorable market indicators, central bank buying, and the potential for further reductions in American interest rates.
These developments suggest a shift in perception, transforming gold from what Warren Buffett once termed a “sterile origin” into a strategic investment capable of protecting wealth and generating substantial returns amidst ongoing global economic fluctuations.
