Gold is expected to extend its strong rally into next year, with analysts projecting that prices could reach $4,500 per ounce in 2026. The outlook comes as spot gold climbed 0.6% to $4,255.04 per ounce on Monday — its highest level since October 21 — while US gold futures for February delivery rose 0.8% to $4,290.40.
UBS analyst Giovanni Staunovo said he anticipates gold to rise to $4,500 an ounce next year. He noted that investors are once again pricing in the likelihood of a Federal Reserve interest rate cut in December, and expectations that the next Fed chair will lean dovish are further boosting demand for the metal.
Gold gained momentum on Monday as markets increasingly bet on lower interest rates following softer US economic data and dovish remarks from policymakers, including Federal Reserve Governor Christopher Waller and New York Fed President John Williams. The CME FedWatch tool shows an 88% probability of a December rate cut — a shift that typically benefits gold, which does not yield interest.
White House economic adviser Kevin Hassett said he would be willing to serve as the next Fed chair if selected, aligning with President Donald Trump’s view that interest rates should remain low. Treasury Secretary Scott Bessent added that Trump is likely to announce his choice before Christmas.
Investors are now watching the ADP employment report and the core US PCE inflation data due later this week for clues on the Fed’s policy direction. Meanwhile, the US dollar slipped to a two-week low, making gold more affordable for buyers using other currencies.
UBS also expects silver to rise to $60 an ounce in 2026. Platinum was up 1.6% at $1,698.85, and palladium gained 1.7% to $1,475.02.
