Gold prices are trading at $4,900 on Tuesday and remain rangebound in the charts, and a recent report from ANZ Bank forecasts the precious metal to reach a high of $5,800 by Q2 of 2026. The bank has revised its target from the previous projection of $5,400 for the same period.
The development indicates that global banks are bullish on the bullion, estimating further upside value. Commodity analysts from ANZ Bank wrote that gold prices are mature enough for a rally despite the recent market volatility.
“Although recent volatility has raised questions about whether gold prices have peaked. We believe the rally is not yet mature enough to reverse anytime soon,” ANZ Bank analysts said. The $5,800 target for the precious metal indicates a surge of another 18.5%.
Also Read: Harvard Sells BlackRock Bitcoin ETF, Choses Ethereum Instead
What Will Lead Gold Prices To Reach $5,800? ANZ Bank Explains
The analysts from ANZ Bank wrote that geopolitical tensions, tariffs, inflation data, and doubts about the Fed’s credibility will lead gold prices to hit the top. “We expect two 25bp rate cuts, one in March and another in June. This will keep real rates falling, supporting inflows into gold,” they wrote.
“Geopolitical and economic uncertainties will likely persist, with Trump continuing to use tariffs as threats. The market’s attention is gradually shifting to the potential impact of tariffs, which has yet to fully emerge in economic and inflation data. And doubts remain around future Fed credibility. Such a backdrop will intensify investors’ appetite for real assets like gold,” ANZ Bank analysts said.
Gold prices provide stability under market pressure, acting as a safe haven for traders. If the glittery metal hits $5,800, the surge would be massive, making the commodity lead the markets. ANZ Bank had previously predicted gold prices, and the majority of them turned out to be accurate.
“Gold serves as a transitional asset, providing stability and diversification when conventional anchors are under pressure. This is why strategic allocations to gold remain relevant, at least until geopolitical stability is achieved, the US’s structural fiscal problems are resolved, and the Fed’s credibility is restored. This is unlikely to materialize anytime soon. In this context, gold’s role as a store of value and hedge is significant,” summed up ANZ Bank in its report.