BofA, Societe Generale see gold at $5,000/oz in 2026

(Reuters) -Analysts at the Bank of America and Societe Generale expect gold to reach $5,000 an ounce in 2026, they said on Monday, while Standard Chartered has raised its forecast for the metal to an average of $4,488/oz next year. Spot gold breached the $4,000 per ounce mark for the first time last week, and was trading at $4,075.29/oz as of 1215 GMT. It has gained 53% so far this year, bolstered by a combination of factors including geopolitical and economic risks, strong central bank buying and expectations of U.S. interest rate cuts. Bank of America lifted its 2026 outlook for gold to $5,000 an ounce, with an average of $4,400, and for silver to $65 an ounce, averaging $56.25. While the bank sees a risk for a near-term correction, it still expects further upside for both metals next year, it said in a note. "The White House's unorthodox policy framework should remain supportive for gold given fiscal deficits, rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around 3%," the bank added. The bank also expects silver to stay supported, despite forecasting an 11% drop in demand next year, because of a persistent shortfall in supply. Spot silver scaled a record high of $51.70/oz and silver futures on Comex for December 2025 were trading at $49.68. Societe Generale also forecast gold prices reaching $5000/oz by the end of 2026, as flows into gold-backed exchange-traded funds have surpassed its initial assumptions. Global inflows into gold ETFs hit $64 billion year-to-date, according to data from the World Gold Council, with a record $17.3 billion in September alone. Standard Chartered raised its 2026 gold price forecast to an average of $4,488 an ounce, up from a previous estimate of $3,875. The bank said it expects some near-term profit-taking and consolidation as seasonal restocking slows. (Reporting by Anushree Mukherjee and Kavya Balaraman in Bengaluru; Editing by Susan Fenton, Ronojoy Mazumdar and Frances Kerry)

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