Gold is on track to extend its impressive rally into 2026, with the World Gold Council (WGC) projecting a further 15–30% surge in the coming year.
The precious metal delivered a historic performance in 2025, notching over 50 record highs and yielding more than 60% returns. Analysts attribute the spike to intensifying geopolitical tensions, global economic uncertainty, a weakening US dollar, and strong momentum from investors seeking safe-haven assets.
According to the WGC outlook, gold could experience an even sharper rise if global risks escalate.
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“The combination of falling yields, elevated geopolitical stress, and a pronounced flight-to-safety would create exceptionally strong tailwinds for gold,” the report stated. “Under this scenario, gold could surge 15–30% in 2026 from current levels.”
Investors Drive Demand
The WGC noted that institutional investors, retail buyers, and central banks all expanded their gold holdings in 2025 as part of broader diversification strategies amid volatile global conditions.
What to Expect in 2026
The Council projects that persistent geopolitical and economic instability will be the main factor shaping gold’s performance next year.
With current price levels already aligning with prevailing macroeconomic expectations, the WGC says gold may trade within a stable range unless major events shift market dynamics.
The report adds:
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Moderate gains could occur if global growth slows and interest rates continue to fall.
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In a more severe global downturn, gold could rally significantly beyond baseline expectations.
Downside Risks
The WGC also outlined scenarios that could temper gold’s rise.
A successful rollout of economic reforms under U.S. President Donald Trump could stimulate stronger U.S. economic growth, ease geopolitical tensions, and lift the U.S. dollar; all factors that historically pressure gold prices downward.
Other potential influences include fluctuating central bank purchases and changes in global recycling supply.
Record-Setting Year
In October, spot gold shattered the $4,000-per-ounce barrier for the first time, driven by mounting global risks and renewed demand for safe-haven assets. The surge marks a dramatic climb from levels below $2,000 just two years earlier, cementing gold’s outperformance of global equities over much of the 21st century.
Key Background
A Nairametrics review shows gold prices jumped 42.8% between September 2024 and September 2025, hitting an all-time high of $3,650 per ounce and briefly breaching $3,800 in October. The rally has been underpinned by a weaker dollar, persistent inflation concerns, and heightened geopolitical instability.
The analysis also noted a significant rise in central bank purchases as nations turn increasingly to gold as a long-term strategic asset.
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