Gold value revaluation is imminent! Institutions forecast surpassing $5,000 by 2026, with policy shifts serving as catalysts

Recently, the Federal Reserve’s policy signals have shifted, reigniting market enthusiasm for gold investments.

Rate Cut Expectations Rise, Gold Responds Accordingly

Federal Reserve officials have recently adopted a clearly dovish stance. On November 24, Governor Waller publicly stated that a rate cut should begin in December, with the primary consideration being labor market stability rather than inflation risks. San Francisco Fed President Daly echoed this sentiment, also supporting a rate cut before the end of the year.

These signals immediately impacted market expectations. According to data from the CME FedWatch Tool, the probability of a rate cut in December has risen to 80.9%, up significantly from 71% the previous trading day. The expectation of easing policies has driven a collective rise in global assets, with the Nasdaq index soaring 2.62%, Bitcoin increasing by 2%, and gold returning to the $4100 per ounce level, with a daily gain of 1.71%.

Institutions Optimistic About Gold’s Future Value

Since November, gold has entered a sustained rebound phase. It has gained a total of 58% since the beginning of the year. Major Wall Street institutions are generally bullish on its future prospects.

UBS has raised its mid-2026 gold target price to $4,500 per ounce, with an upward target of $4,900 per ounce. The bank’s analysis suggests that the start of a rate cut cycle, normalized geopolitical risks, continued demand from central banks for reserve assets, and active participation from global ETF investors will all support an increase in gold’s value. UBS further notes that technical adjustments have concluded, and aside from technical factors, there are no fundamental reasons to support selling, with potential demand momentum remaining strong.

Bank of America’s outlook is even more optimistic. The bank predicts that, under favorable conditions such as expanding fiscal deficits, reignited inflation pressures, and declining interest rates, gold could reach $5,000 per ounce by 2026, with an average annual price around $4,538 per ounce. BofA also points out that tight global mineral supplies, low inventories, and uneven demand distribution further reinforce the support for gold’s value.

Market consensus is gradually forming: against the backdrop of a shift toward easing monetary policy and ongoing geopolitical uncertainties, gold’s appeal as a safe-haven asset continues to rise.