AI-Summary – News For Tomorrow
Gold prices surged to record highs in 2025, exceeding US$4,500 per ounce, a 72% increase from the previous year. Analysts predict further gains, potentially reaching US$5,000 by 2026. Driving factors include persistent geopolitical tensions, central banks’ increased gold purchases diversifying away from the US dollar, and countries like China reducing US Treasury holdings. Goldman Sachs raised its forecast, citing strong central bank demand and anticipated easing by the US Federal Reserve. Hong Kong aims to capitalize on this trend, planning to become a global commodities trading hub by 2026. Experts emphasize gold’s role as a hedge against economic uncertainty and policy errors, making its price secondary to its strategic purpose.
News summary provided by Gemini AI.
Gold has hit multiple records in 2025, but analysts believe the rally is far from over, with some forecasting the yellow metal could climb to US$5,000 per ounce amid geopolitical tensions and a buying spree by central banks.
Spot gold broke through the US$4,500-per-ounce mark for the first time, reaching a record US$4,510 on Christmas Eve on Wednesday, which was 72 per cent higher than the end of last year, when it stood at US$2,624.
The Hong Kong government is rolling out big plans in 2026 to position the city as a global commodities trading hub. Photo: Shutterstock alt=The Hong Kong government is rolling out big plans in 2026 to position the city as a global commodities trading hub. Photo: Shutterstock>
He said all the factors supporting gold showed “no sign of disappearing any time soon, which is why prices are set to go up further in 2026”.
Goldman Sachs lifted its gold price forecast for December 2026 to US$4,900 per ounce, with analyst Lina Thomas citing strong structural demand from central banks and easing by the US Federal Reserve.
Fung said central bank buying remained a major driver of the rally. “Central banks traditionally invest in US Treasuries and other US dollar assets,” Fung said. “But amid rate cuts and geopolitical tensions, they want to decrease their holdings in US dollar and gold has become a natural choice.”
