Gold Price Rose 65% in 2025; Will 2026 See a Repeat?

• After a gain of 65% last year, the gold price has risen almost 20% this year so far, with Bank of America and Societe Generale analysts projecting it could reach as high as $6,000 an ounce this year.
• Record central bank gold buying is helping boost gold prices, with central banks now holding over $4.5 trillion in gold, versus $3.5 trillion in US Treasuries.
• Safe haven buying of gold is increasing, with geopolitical uncertainty helping push more people into safe haven assets.

With a price gain of 65% last year, gold had its third-best year since 1970. But will the yellow metal be able to keep that momentum going through 2026?

So far this year the answer seems to be yes, as gold has risen another 20%, continuing to set all-time highs. The jump from $4,000 to $5,000 seemed to come relatively easily, and Bank of America analysts now believe that gold could hit $6,000 within months.

If you already own gold, you’re probably enjoying watching the value of your gold holdings climbing ever higher. But if you’re looking to buy more gold, you’re probably wishing you had bought gold earlier when it was cheaper.

Now the question everyone wants to know is, will gold continue shooting ever higher? And where could the gold price end up in 2026?

Why Is the Price of Gold Rising?

Like all goods, the gold price is determined by the interplay between supply and demand. According to the World Gold Council, there are four main categories that contribute to gold demand: Jewelry Fabrication, Investment, Central Banks, and Technology, with Jewelry Fabrication and Investment normally being the two largest factors.

Behind these major categories, however, are some trends in gold markets that are helping push the gold price higher. Let’s look at five of the reasons the price of gold continues to rise.

1. Gold Safe Haven Buying

Gold has served as a safe haven asset for centuries, and is one of the first assets people flock to during times of turmoil or uncertainty. Right now the US economy is facing economic uncertainty, with low consumer confidence, a weak job market, and persistent inflation.

Recession fears are growing, so people are turning to safe haven assets to try to help protect themselves ahead of any potential downturn. Gold is one of those safe havens, and the gold price has benefitted from this safe haven buying.

2. Central Bank Gold Purchases

Individuals aren’t the only ones buying gold as a safe haven, as central banks have increased their purchases of gold in recent years. Full numbers for 2025 haven’t been published yet, but total central bank gold purchases in 2024 exceeded 1,080 tonnes, with central banks buying more than four times as much gold in 2024 than they did in 2020.

While 2025 started off slow, perhaps due to rising gold prices, that pace picked up in the latter half of 2025, with central bank purchases in late 2025 nearly equaling the total amount of purchases in the first eight months of the year.

In fact, central banks now hold a greater percentage of reserves in the form of gold than they do in dollars, cementing gold’s status as a fundamental reserve asset. And gold buying by central banks is expected to continue into 2026 at an elevated rate, helping contribute to heightened gold demand.

3. Federal Reserve Monetary Policy Could Boost Gold

It is widely anticipated that the Federal Reserve will, at some point, continue its series of interest rate cuts. Right now markets expect the next rate cut to come at the June Federal Open Market Committee (FOMC) meeting, with a 25 basis point rate cut expected, to drop the federal funds rate to 3.25-3.50%.

Of course, if there were to be clear signs of economic deterioration in the interim, that next rate cut could come earlier. But right now, markets expect that first rate cut in June, with another possible rate cut of 25 basis points later in the year.

As the federal funds rate drops, so do interest rates on many bonds, including US Treasury bonds. Lower bond yields can make bonds a less attractive investment option for people who buy bonds as interest-bearing assets.

That could help boost the appeal of gold, which doesn’t pay interest. If you have a choice between US Treasury bonds that offer a low “guaranteed” interest rate, or an asset like gold that has already gained 20% this year, which do you think most people might choose?

4. Geopolitical Uncertainty Helping Drive Gold Demand

Uncertainty about the future performance of the US economy isn’t the only factor helping drive gold prices higher. Geopolitical uncertainty is starting to become an important factor this year too.

Tariffs may have been the threat in 2025, but trade war or even all-out war are fears in 2026. With a raid on Venezuela, the threat of intervention in Iran, and saber rattling surrounding Greenland, the world suddenly seems to be a very unstable place.

This heightened geopolitical uncertainty could help boost gold prices.

5. Heightened Consumer Interest in Gold

Any time you have an asset that climbs 65% in a single year, then goes on to make double digit gains and set new record highs in the first month of the next year, you’re going to have interest from people who wouldn’t normally give that asset a second look.

Gold has been the subject of numerous headlines over the past several months as it set all-time highs, passing $3,000 an ounce, then $4,000, and now $5,000. People are starting to sit up and take more notice of gold and are looking to add it to their portfolios.

Gold exchange-traded funds (ETFs), for instance, saw their strongest year of inflows ever, driven by demand from North America. Gold ETFs now hold a record 4,025 tonnes of gold, up almost 25% from 2024.

But it wasn’t just North Americans driving this demand. Asian gold holdings nearly doubled, and Europeans rushed to stock up on gold too. With so much momentum behind the gold price, and so much attention in the media, could 2026 end up being another record-breaking year?

And how might this increased attention play out in gold markets? Will ETFs drive the increase in retail gold holdings, or will physical gold coin and gold bar demand increase as well?

2026 is already a record-breaking year for gold in that it has already set numerous all-time highs. We’ll just have to see how high the gold price can go from here.

Are You Taking Advantage of Rising Gold Prices?

Gold’s performance over the past year shouldn’t be a surprise to anyone who has studied the yellow metal and its historical price performance.

During the 1970s, the gold price rose at an annualized rate of over 30% per year over the course of the entire decade, and during the early part of the 2007-08 recession the gold price increased 26% as stock markets began to lose their footing.

During the 2008 crisis, the gold price rose nearly 25% during the same period that stock markets fell over 50%, and in the aftermath of the crisis the gold price rose almost 270% from its 2008 low to its 2011 high.

While some analysts today expect gold to hit $6,000 this year, others expect it to hit over $7,000. Given how many analysts’ bullish forecasts failed to anticipate gold’s phenomenal performance in 2025, it’s not inconceivable that even these seemingly bullish forecasts for 2026 could miss the mark to the low side again.

A 65% increase from today’s gold prices would put gold at over $8,000 an ounce. No one expected the gold price to rise that much last year, but it did. Could it happen again this year?

If you want to take advantage of rising gold prices to add gold to your portfolio, Goldco has numerous  gold coin options available for you, whether you choose to make a direct cash purchase of gold or prefer to hold your gold coins in a gold IRA.

With prices rising every day, now is the time to decide whether you want to start putting gold to work for you. Call Goldco today to talk to one of our specialists and learn more about your gold buying options.

The post Gold Price Rose 65% in 2025; Will 2026 See a Repeat? appeared first on Goldco.