Gold Prices: Geopolitical Risks and Fiscal Uncertainty

Gold prices are expected to rise due to geopolitical risks and fiscal uncertainty. HSBC has lowered its 2026 average gold price forecast to $4,560 per ounce from $4,864. The 2027 forecast has also been revised to $4,925 from $5,000. The bank has maintained its 2028 and 2029 forecasts at $5,200 and $5,300, respectively. It predicts a year-end price of $4,750 for 2026 and $5,025 for 2027.

The Future of Gold Prices

■Gold prices are expected to rise due to geopolitical risks and fiscal uncertainty.

■HSBC has lowered its 2026 average gold price forecast to $4,560 per ounce from $4,864.

■The 2027 forecast has also been revised to $4,925 from $5,000.

Central Bank Demand

■Central banks are expected to remain a significant catalyst.

■Purchases declined to 863 tons in 2025 due to high prices.

■They were around 1,100 tons annually between 2022 and 2024.

Expert Analysis

I believe that the rise in gold prices is expected due to geopolitical risks and fiscal uncertainty. HSBC's forecasts provide important clues about the future of gold prices. However, it is difficult to predict exactly how prices will shape up due to the volatile nature of the markets.