Large banks place expectations on gold's upward trend
Recently, many international banks and financial institutions have announced new forecasts on gold price prospects. The assessments show that gold prices may continue to receive support from a number of factors such as central bank demand, interest rate developments and global economic risks. However, these organizations also noted that the market still faces factors that may put pressure on adjustment.
UBS (Swiss investment bank) is one of the organizations maintaining a positive outlook on gold. This bank forecasts that gold prices may reach the 5,000 USD/ounce mark in the first half of 2027.
According to UBS's assessment, the gold buying demand of central banks, the trend of diversifying foreign exchange reserves and the role of hedging against risks are still important supporting factors for the market.
Meanwhile, Citigroup (US financial group Citigroup) believes that gold may continue to benefit from instability related to monetary policy, public debt and USD outlook. This bank put forward a scenario that gold prices could reach about 4,500 USD/ounce in Q4/2026 and are likely to reach the 5,000 USD/ounce zone in the first half of 2027 if supporting factors continue to be maintained.
Financial group Goldman Sachs (USA) is also in the group with optimistic views on precious metals. This bank forecasts that gold prices could reach about 4,900 USD/ounce by the end of 2026. Despite adjusting some expectations due to the interest rate policy outlook of the US Federal Reserve (Fed), Goldman Sachs still assesses buying power from central banks and investment demand will continue to create momentum for gold prices.
Long-term prospects are still positively assessed
Not only UBS, Citi or Goldman Sachs, many other international banks also believe that gold is receiving support from long-term factors.
Deutsche Bank (one of the largest banks in Germany and Europe) maintains its gold price forecast in the range of about 4,600 USD/ounce by the end of 2026. This bank believes that the upward trend of gold has not ended, although the growth rate may slow down after a period of precious metals continuously setting new highs.
Bank of America - one of the largest banks in the US also gave a positive outlook, saying that gold may head towards the 5,000 USD/ounce mark in the medium term. According to the bank's assessment, concerns about fiscal deficits, the strength of the USD and the need to preserve assets continue to boost cash flow into gold.
The above forecasts show that many major financial institutions still place their trust in the upward trend of gold. The main driving force comes from central banks continuing to add gold to reserves, while investors increase their defense needs against fluctuations in the global economy.
Adjustment risk still present
Although the long-term outlook is assessed positively, banks also warn that gold prices may face short-term corrections.
One of the important factors is the Fed's interest rate policy. If interest rates remain at a higher level longer than expected, the USD may strengthen, putting pressure on gold prices. In addition, after a period of strong increase, investor profit-taking activities may also cause the market to experience large fluctuations.
However, with many major financial institutions jointly setting higher price targets in the coming years, gold is still considered one of the assets of interest in the context that the global economy still has many unpredictable factors.
International bank forecasts show that the common scenario today is that gold prices may fluctuate in the 4,500-5,000 USD/ounce range in the medium term, with the possibility of expanding the upward momentum if supporting factors continue to take effect.
The information in the article is not an investment recommendation.
