What is the story about?
Gold is set for an extended rally in 2026, with prices expected to touch the $4,600–$4,800 range, according to Ventura, a full-service stock broking platform.
The projected rally could be driven by central bank purchases, persistent inflation, widening US deficits, and concerns over the US economy and trade tariffs. Expectations of a 75-basis-point Federal Reserve rate cut are also supporting investor interest in gold as a hedge against inflation. Both institutional and retail investors are likely to participate in the market amid ongoing volatility.
Gold has recorded new highs in nine consecutive quarters, including Q4 2025. After reaching a high of $4,398 on October 20, 2025, the metal corrected by 11% to a low of $3,891 on October 28 before rebounding to $4,299 in early December. Analysts note that while Treasury yields have edged higher, long-term demand for gold remains firm.
The recent rally has been supported by expectations of lower US interest rates, with investors anticipating that softening inflation and cooling labor conditions may allow policymakers to ease rates. Market participants are currently consolidating positions, taking profits on short-term gains but not signaling a broader reversal. Analysts suggest support levels at $4,202–$4,114 and resistance at $4,255–$4,300, with potential rallies to $4,381–$4,441 if resistance levels are breached.
Long-term factors underpinning gold’s bullish trend include structural demand from central banks, increased participation in gold ETFs, and global concerns over rising budget deficits and potential credit stress. COMEX inventories have declined roughly 20% from their peak, while global ETF holdings reached a three-year high, indicating persistent physical scarcity.
Analysts caution that periodic corrections are possible, especially if the US Federal Reserve moderates rate cuts or if geopolitical tensions ease. Nevertheless, gold continues to benefit from its status as a safe-haven asset amid wobbly global stock markets, rising debt levels, and weakening US dollar trends.
The projected rally could be driven by central bank purchases, persistent inflation, widening US deficits, and concerns over the US economy and trade tariffs. Expectations of a 75-basis-point Federal Reserve rate cut are also supporting investor interest in gold as a hedge against inflation. Both institutional and retail investors are likely to participate in the market amid ongoing volatility.
Gold has recorded new highs in nine consecutive quarters, including Q4 2025. After reaching a high of $4,398 on October 20, 2025, the metal corrected by 11% to a low of $3,891 on October 28 before rebounding to $4,299 in early December. Analysts note that while Treasury yields have edged higher, long-term demand for gold remains firm.
The recent rally has been supported by expectations of lower US interest rates, with investors anticipating that softening inflation and cooling labor conditions may allow policymakers to ease rates. Market participants are currently consolidating positions, taking profits on short-term gains but not signaling a broader reversal. Analysts suggest support levels at $4,202–$4,114 and resistance at $4,255–$4,300, with potential rallies to $4,381–$4,441 if resistance levels are breached.
Long-term factors underpinning gold’s bullish trend include structural demand from central banks, increased participation in gold ETFs, and global concerns over rising budget deficits and potential credit stress. COMEX inventories have declined roughly 20% from their peak, while global ETF holdings reached a three-year high, indicating persistent physical scarcity.
Analysts caution that periodic corrections are possible, especially if the US Federal Reserve moderates rate cuts or if geopolitical tensions ease. Nevertheless, gold continues to benefit from its status as a safe-haven asset amid wobbly global stock markets, rising debt levels, and weakening US dollar trends.
