Gold: New target set at USD5,600/oz – OCBC

OCBC Bank has revised its Gold forecasts higher to USD5,600/oz by end-2026, up from USD4,800/oz, reflecting recent price increases and persistent structural demand. The report highlights that geopolitical uncertainty continues to support Gold prices, which are driven by a sustained backdrop of uncertainty rather than cyclical factors. The analysis indicates that the underlying drivers of the Gold uptrend remain largely unchanged.

Revised Gold forecasts reflect demand

"We have revised the gold forecasts higher to USD5,600/oz by end-2026 (vs USD4,800/oz prior) to reflect the recent sharp price increases and the persistence of structural demand, rather than a reassessment of the underlying narrative."

"The rally has been notable – strongest year-to-date rally (of ~17%) and has been persistent, with prices remaining elevated despite intermittent pullbacks and periods of relative calm in headline geopolitical risks."

"These developments point to a material geopolitical, or uncertainty premium now embedded in gold prices, driven less by cyclical factors and more by the persistent uncertainty around geopolitics, policy unpredictability and confidence in USD."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)