Distinguished senior scholar and Professor of Applied Economics at Johns Hopkins University, Steve Hanke, predicts that gold prices will reach $7,000 next. The XAU/USD index is currently trading at the $4,500 level on Tuesday and has surged more than 36% in a year. In 2026 alone, prices have spiked nearly 4.50%, making it among the best-performing commodities in the market.
Hanke reiterated his bullish stance on gold with a bigger price target, urging traders to take an entry position. He also estimates that a bull run is warming up and could soon hit a new price trajectory. “Buy gold, wear diamonds. I stand with my prediction that gold’s secular bull run will peak out at $6,000-$7,000/oz,” he wrote.
His bullish stance on gold is based on the rising central bank demand for the precious metal. According to recent data published by YouGov and the World Gold Council, around 95% of the world’s central banks plan to increase their gold holdings in the next 12 months. This could lead to an extremely bullish run that can eventually break through all price ranges.
The analyst argued that gold is still undervalued even at the $4,500 levels. He remains so convinced of a rally that he even disagreed with Morgan Stanley cutting their gold price prediction from $5,700 to $5,200. Hanke stressed that the precious is still undervalued and underowned, and a slew of purchases will take it above the $6,000 to $7,000 zone.
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Gold Moving Upward Since 2022
After the US imposed sanctions on Russia in February 2020 for invading Ukraine, gold prices have steadily surged. Central banks of developing countries have been purchasing tons of the precious metal to protect their economies from the US. Countries such as Poland, Thailand, China, India, Russia, Brazil, and South Africa, have purchased tons of gold worth billions. The increase in accumulation kick-started in 2022, with the US dollar being sidelined in their central bank reserves.