World gold prices are on the brink of ending 2025 with an increase of more than 60%, establishing a series of new price peaks and recording a rare record in history. However, according to precious metals analyst Heraeus Precious Metals, gold's price increase cycle is not over yet, but is only taking a break after a strong breakout period.
In a report released on December 8, Heraeus stated that when the rally returns, gold could well reach the $5,000/ounce mark in 2026, while silver could reach $62/ounce, although physical demand for the two metals is not really vibrant.
Heraeus said that there are three main drivers that continue to support gold's upward momentum:
First, global central banks are accelerating gold purchases to diversify foreign exchange reserves, in the context of high inflation and public debt. Sustainable capital flows from this group help the precious metals market maintain a solid foundation.
Second, widespread economic and geopolitical instability is causing the demand for safe-haven assets to increase. As confidence in the statute weakens, gold continues to affirm its position as a reliable " Dock" for investors.
Finally, US monetary policy could become an important catalyst if the Federal Reserve (Fed) begins to cut interest rates next year. With interest rates falling and the US dollar weakening, gold, even if it does not yield, is still considered a more attractive investment channel in the eyes of global funds and investors.
The price increase journey is still full of fluctuations
Despite the positive outlook, experts warn that gold is not immune to risks. If the Fed maintains interest rates higher than expected, the appeal of gold may decrease compared to other profitable assets such as stocks or bonds. As risk sentiment improves and cash flow returns to investment channels with higher yields, demand for gold and silver shelters may cool down. In addition, if gold supply increases while investment demand stagnates, the price increase will be significantly held back.
Heraeus said that the scenario of gold reaching 5,000 USD/ounce and silver reaching 62 USD/ounce in 2026 is completely feasible if favorable conditions simultaneously appear - from loose monetary policy, weak USD to prolonged geopolitical tensions. However, investors need to be cautious, because any fluctuations in interest rate policy or international capital flows can cause price trends to reverse rapidly.
In the context of many uncertainties in the world economy, gold still plays a symbolic role in global financial confidence and is an effective value defense channel. Although the $5,000/ounce mark is still far away, with the spectacular rally in 2025 and the prospect of policy easing next year, this scenario is becoming more and more realistic.
