NewKerala.com

Gold Bull Run to 2026: Central Banks & Fed Cuts Fuel New Highs

Gold's bull run is projected to extend into 2026, with prices expected to reach new highs averaging $4,325 per ounce. This surge is fueled by sustained central bank purchases, anticipated Federal Reserve rate cuts, geopolitical risks, and expanding ETF holdings. Silver prices are also forecast to remain well-supported, averaging $55 per ounce, due to persistent supply deficits and robust industrial demand from sectors like solar and EVs. The report highlights that investment and institutional demand are creating a powerful, multi-year tailwind for both precious metals.

Key Points: Gold & Silver Outlook 2026: Prices, Drivers & Forecast

  • Central bank gold buying surges
  • Fed rate cuts & dollar weakness
  • Silver supply deficit persists
  • Strong industrial & ETF demand
2 min read

Gold bull run to extend into 2026, silver to stay supported: Report

ING forecasts gold to average $4,325/oz in 2026, driven by central bank buying, Fed rate cuts, and ETF inflows. Silver to stay supported at $55/oz.

"This bull run still has further to go. - ING Commodities Outlook 2026"

New Delhi, January 2

Gold will continue to shine, prices are expected to make new highs in 2026, driven by central bank buying, Fed rate cuts, a weaker dollar, concerns about the Fed's independence, and ETF buying, noted ING's Commodities Outlook 2026.

"Central banks are still buying, Trump's trade war is ongoing, geopolitical risks remain elevated, and ETF holdings continue to expand while expectations of more Fed rate cuts intensify, suggesting this bull run still has further to go. We see prices averaging $4,325/oz in 2026," the report noted.

According to the outlook, President Trump's pick for Fed chair is expected to push for lower interest rates, benefiting gold. Central banks too continue to be a key driver of gold demand, with many institutions adding to their gold reserves in recent months. In the third quarter of 2025, central banks bought an estimated 220 tonnes of gold, a 28% increase from the second quarter.

Poland, China, and Kazakhstan have been among the most active buyers, with Poland's central bank resuming purchases after a five-month pause

"Central banks' appetite for gold is driven by concerns from countries about Russian-style sanctions on their foreign assets in the wake of decisions made by the US and Europe to freeze Russian assets, as well as shifting strategies on currency reserves.", the report further said.

Investment demand for gold has also been a powerful force, with gold-backed exchange-traded funds (ETFs) seeing significant inflows in recent months. "Gold ETF investors added 222 tonnes, taking global holdings within reach of their November 2020 all-time high.", the report added.

Silver, often nicknamed "gold on steroids", made new highs in 2025, due to "persistent supply deficit, strong industrial demand thanks to solar - one of the metal's primary uses, EVs and electronics, and renewed investment flows into silver as a cheaper alternative to gold."

On the supply side, silver is facing another year of deficits, extending the multi-year trend of tightening physical balances. This year will mark the fifth consecutive year of deficits.

"We expect silver prices to remain well-supported amid the combination of resilient industrial demand, constrained supply growth, and a more favourable macro environment. We see prices averaging $55/oz in 2026", the report stated.

- ANI

Share this article:

Reader Comments

S
Sarah B
The link between geopolitical risks and gold demand is clearer than ever. Countries diversifying away from the dollar is a long-term trend. As an expat in India, I see the local passion for gold firsthand. This report suggests that passion is now a global financial strategy.
A
Aditya G
Silver at $55/oz! This is the real story for me. With India's massive push for solar energy and EVs, industrial demand for silver will only go up. It might be time to look beyond gold and invest in silver ETFs or even physical silver bars. The "poor man's gold" might make many people rich.
P
Priya S
While the report is optimistic, I hope the government keeps import duties in check. High gold prices are great for those who already own it, but for middle-class families saving for a daughter's wedding, it becomes a huge burden. Policy needs to balance investment and social needs.
K
Karthik V
The mention of central banks fearing "Russian-style sanctions" is a sobering point. It's not just about returns; it's about sovereign security. This bull run is built on a lack of trust in the global financial system. Makes you think.
M
Meera T
Gold prices in India will also depend on the rupee-dollar equation. But the long-term trend is clear. My mother always said, "Sona kabhi bech mat dena" (never sell your gold). She was right, as usual! Time to start that monthly gold SIP for my niece.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50