Gold Prices Expected to Maintain Upward Momentum in 2026

Gold prices, after a strong rally in 2025, are expected to continue their upward trend into 2026, according to World Gold Council CEO David Tait. Speaking to CNBC TV18, Tait said several long-term trends are likely to keep demand for the precious metal firm.

He described 2025 as the best year for gold since 1979. The surge was attributed to sustained institutional buying and broader global economic factors.

Key Drivers Behind Gold’s Rally

Tait pointed to sustained central bank purchases as a major factor supporting gold prices. He noted that all major buyers have remained active in the market throughout the year.

In addition to institutional demand, deregulation in China and renewed interest in gold in Japan, which is experiencing inflation for the first time in three decades, have contributed to the rally. The rapid growth of exchange-traded funds (ETFs) in India has further strengthened investment demand.

Global Debt and Investment Trends

According to Tait, the most significant underlying support for gold remains the persistent rise in global debt levels. He emphasised that concerns over financial stability have prompted investors to seek safe-haven assets.

While jewellery demand has softened due to higher prices, investment demand through physical bars, coins, and ETFs has emerged as the primary growth engine. Tait observed that investors worldwide are increasingly aware of the risks posed by mounting debt burdens.

Outlook for 2026 and Potential Risks

Looking ahead, Tait expressed confidence that gold prices will continue to rise, supported by multiple macroeconomic factors. He acknowledged that several banks and brokerages have projected prices to reach between $4,500 and $5,000 in 2026, though he refrained from giving a specific forecast.

Tait mentioned a low-probability scenario that could temper the rally, a potential US administration achieving 6–7% economic growth with moderate inflation and a declining debt outlook. However, he stressed that such an outcome is highly unlikely.

Read More: Gold Prices Ease on MCX As Profit Booking Weighs on Dec 16, 2025.

Conclusion

Gold’s strong performance in 2025 has laid the groundwork for potential gains in 2026, supported by firm investment demand and ongoing global economic uncertainty. Although jewellery demand continues to face pressure, ETFs and physical investment products are expected to maintain momentum.

Central bank purchases remain a key driver of demand. Persisting debt concerns are also likely to keep gold attractive for investors seeking stability.

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