Gold breaks new record on Greenland tariff threats, with forecast of $7,000 on the cards

Gold prices climbed to a caller grounds supra $4,800 connected Wednesday, extending a crisp rally arsenic investors sought information amid tariff threats from the White House and renewed concerns astir a planetary commercialized war.

The surge has reignited statement among investors implicit however overmuch prices tin emergence aft a blockbuster twelvemonth for the bullion.

Following a record-breaking 2025, golden has entered 2026 with momentum intact arsenic geopolitical tensions, falling existent involvement rates and efforts by investors and cardinal banks to diversify distant from the dollar reenforce its relation arsenic the world's eventual haven, analysts said.

Forecasts are progressively bullish. Analysts surveyed by the London Bullion Market Association expect prices to emergence supra $5,000 this year, citing expectations of little U.S. existent rates, continued Federal Reserve easing and sustained central-bank diversification distant from the dollar.

Julia Du, a elder commodities strategist astatine ICBC Standard Bank, sees golden prices pushing arsenic precocious arsenic $7,150.

"Gold remains the header communicative aft a record-breaking 2025," the LBMA said successful its forecast survey.

Goldman Sachs besides reiterated its bullish stance, calling golden its highest-conviction trade, driven by a displacement successful who is buying the metal.

"Gold remains our highest condemnation agelong oregon basal case, the terms by the extremity of this twelvemonth is $4,900," said Daan Struyven, co-head of planetary commodities probe astatine Goldman Sachs.

He noted that cardinal slope purchases drove gains successful 2023 and 2024, portion the rally accelerated successful 2025 arsenic private-sector request increased.

"Private investors are starting to diversify into golden done antithetic channels," helium said successful a media briefing connected Wednesday, with ETF inflows offering 1 wide grounds of that shift, though it's hard to abstracted retail request from organization flows. 

According to Goldman Sachs, request mostly came from backstage wealthiness firms, plus managers, hedge funds and pension investors.

For galore golden bulls, geopolitics remains the defining backdrop. Nicky Shiels, caput of metals strategy astatine MKS PAMP, said the existent rhythm does not lucifer a speculative peak. She expects golden prices to scope $5,400 this year.

"Last twelvemonth was historic, benignant of a erstwhile successful a 100 twelvemonth lawsuit crossed precious metals, wherever metallic fundamentally doubled," she said.

"Gold was up 60%, truthful we won't spot a repetition of those gains, but $5,400 is simply a coagulated 30% up twelvemonth connected year," she said. "This is simply a secular trade. This isn't a commodity blowoff top."

Geopolitical tensions, she argued, are not fading into the background. Recent flashpoints, including U.S. actions successful Venezuela and Washington's propulsion to asseverate power implicit Greenland, person lone deepened investors' formation to gold.

"You're entering a satellite wherever ... determination is simply a beardown request to unafraid captious metals, captious commodities successful this decade," Shiels said.