Gold prices may set a record in 2026 thanks to many supporting factors

According to Wells Fargo (one of the largest financial and banking corporations in the US), strong gold purchases from central banks, a weakening USD, additional interest rate cuts by the US Federal Reserve (Fed) and prolonged geopolitical instability will push gold prices above current levels and set a new record in 2026.

In the 2026 outlook report released this week, Wells Fargo analysts said they believe gold will be one of the rare outstanding assets in the commodity group next year.

We expect the prices of precious metals and industrial metals to continue to increase in 2026, but increased crude oil supply will limit the overall profit of the commodity market, they wrote, adding that the bank remains neutral on the commodity market.

We assess that loosening financial and macroeconomic conditions and improving the macro environment in 2026 will create a positive push for moderate profits. We maintain a neutral assessment of the entire commodity group because we believe that the pressures from the surplus energy will limit overall efficiency, the report stated.

However, gold still has room to grow next year - even after a breakout 2025.

We continue to be optimistic about the upward trend of gold (and the precious metals group) in 2026. Recent conditions are favorable for gold's dominance as global demand increases thanks to strong central bank purchases, a weakening USD, Fed rate cuts and increased geopolitical risks, they wrote.

Wells Fargo analysts expect many of these supporting factors to continue in 2026, helping gold maintain its upward momentum, although the pace may be slower than in 2025.

Central banks continue to play a key role in golds rally, and many initial concerns about gold purchases remain in place, such as inflation and diversification needs due to geopolitical risks. In addition, our expectations that the Fed will continue to cut interest rates and the US dollar will remain stable could boost growth in gold demand in ETFs, they said.

In the main investment idea group for 2026, Wells Fargo recommends that investors adjust their portfolios to take advantage of the context of lower interest rates in the short term.

In general, the monetary environment supports selective income generation and risk acceptance, focusing on high-quality assets to preserve capital while preparing for the growth recovery period.

Commodities - especially gold and precious metals - could provide capital preservation, in our view, in the context of the remaining inflation and geopolitical risks, along with a stable outlook for the US dollar and persistent demand from central banks, the report said.

Wells Fargo commodity analysts expect gold to increase by 5.8% to 10% next year, with year-end prices ranging from 4,500 - 4,700 USD/ounce.