Despite strong fluctuations in recent times, gold is still considered one of the most attractive investment channels in the medium and long term as many large financial institutions continue to raise their price forecasts for this precious metal.
In the mid-year outlook report, Wells Fargo - the third largest bank in the US - raised its gold price forecast for the end of 2026 to the range of 5,300 - 5,500 USD/ounce and expects the price to continue to rise to 5,800 - 6,000 USD/ounce by the end of 2027.
Mr. Sameer Samana - Head of Global Stock and Real Estate Strategy at Wells Fargo said that although gold still risks adjusting below the 4,000 USD/ounce mark in the short term, the long-term outlook for the precious metal is still very positive.
According to Wells Fargo, current gold support drivers are structural and last for many years instead of just short-term cyclical factors.
This bank believes that prolonged inflationary pressure, increased public debt and demand for gold reserves from central banks will continue to be important supporting factors for the gold market in the coming period.
We believe that gold is still an effective tool to diversify investment portfolios. In the context of a still volatile global economic environment, more and more central banks are looking for additional reserves besides bonds and cash," Mr. Samana said.
The above assessment was made in the context of gold prices recovering after a sharp adjustment since the beginning of the year. Spot gold is currently trading around 4,357 USD/ounce, slightly increasing during the session but still 20% lower than the peak set in January.
Mr. Darrell Cronk - Investment Director of Wells Fargo said that factors related to inflation and long-term investment trends are continuing to create a supporting foundation for real assets such as gold.
According to this expert, although inflation may cool down somewhat in the second half of the year, the possibility of returning to a low inflation environment like the pre-pandemic period is not high.
Wells Fargo also believes that long-term bond yields are unlikely to fall deeply in the near future as inflationary pressure still exists. This makes investors continue to look for tools to preserve value in the long term.
Mr. Samana said that gold is currently one of the most attractive investment opportunities considering the correlation between risk and expected profit.
Gold may still see short-term corrections, but from a long-term perspective, the outlook for this precious metal is still very positive," he said.
In addition to gold, Wells Fargo also appreciates the prospects of the industrial metal group. The bank believes that demand from technology infrastructure projects, data centers and the electrification process of the economy will continue to support copper prices and many other basic metals in the coming years.
According to Wells Fargo, both precious metals and industrial metals can benefit from the increasing trend of demand for strategic resources to serve future economic and technological growth.
