Gold’s blazing rally is expected to push prices beyond $5,000 an ounce next year, fueled primarily by central bank buying in emerging-market economies, according to J.P. Morgan Private Bank. Alex Wolf, the firm’s global head of macro and fixed income strategy, projected in an interview that gold prices could hit between $5,200 and $5,300 by the close of 2026—over 25% above current levels.
Central bank purchases have been a major catalyst behind gold’s sharp rise over the past few years, as policy makers seek to diversify assets and store value. Although prices peaked above a record $4,380 in October before a slight recent pullback, the metal remains up more than 50% for the year.
Wolf noted that gold still makes up a relatively small share of forex reserves for many central banks, especially in emerging markets, and they continue to add exposure despite cooling buying momentum following recent price gains.
Central Bank Buying Fuels Gold’s Surge
Gold prices have more than doubled in the last two years, supported by strong demand from central banks.
World Gold Council data shows that central banks increased their gold reserves by 634 tons over the year through September. While this is lower than totals in recent years, it remains significantly above pre-2022 norms. The World Gold Council expects 2025 purchases to range between 750 and 900 tons.
China has been the dominant buyer, aiming to reduce reliance on US-centered financial systems. Other nations like Poland, Turkey, and Kazakhstan have also boosted their gold holdings.
Story by: Mercy Addai Turkson #ahotoronline.com