The World Gold Council (WGC) has warned that lingering geo-economic tensions and the possibility of a deeper global slowdown could once again push gold prices to new highs in 2026.
In its newly released Gold Outlook 2026 report, the council highlighted that gold had an exceptional year in 2025 — surpassing 50 record highs and delivering gains of over 60% year-on-year — mainly driven by persistent economic uncertainty, geopolitical instability, a softening US dollar and strong momentum in investment demand.
Central banks and investors are both increasing their exposure to gold to hedge against volatility and diversify portfolios, according to the report.
Expectations for 2026
The WGC noted that if current economic expectations hold steady, gold prices may move within a stable band. However, it warned that the market has shown a strong tendency to defy forecasts:
“Taking lessons from this year, 2026 will likely deliver more surprises,” the report stated.
A scenario of slowing global growth and lower interest rates could translate into moderate price gains, while a more severe contraction marked by heightened geopolitical or financial stress would likely trigger significant upward pressure on gold.
The report also emphasized the ongoing role of central bank reserves, recycling trends and demand from emerging markets as key dynamics shaping the market.
Ultimately, the council stressed that gold will maintain its position as a safe-haven asset and key portfolio stabilizer, especially amid continued market fluctuations heading into the new year.
Author: Tuğçe Nur Kaya
Source: NewstimeHub
