Fidelity International Projects Gold to Reach $4,000 per Ounce by End of 2026
Fidelity International anticipates that gold prices could rise to $4,000 per ounce by the end of 2026, supported by a combination of macroeconomic factors. These include expectations of U.S. interest rate cuts, a weakening dollar, and continued accumulation of gold reserves by central banks worldwide.
Recent market movements indicate that some investment funds have increased their gold allocations, particularly following the metal’s decline from record highs above $3,500 per ounce in April. In certain portfolios, the traditional 5% gold allocation has been doubled in response to more favorable entry levels.
Despite gold trading within a narrow range in recent months, it has recorded gains of over 25% year-to-date. The upward trend has been fueled by geopolitical concerns and developments in global trade policy, contributing to investor demand for safe-haven assets.
Meanwhile, economic officials from the United States and China held extended discussions in Stockholm in an effort to resolve longstanding trade disputes. The talks aimed to extend a three-month trade truce between the two major economies.
In parallel, the United States reached a preliminary trade agreement with the European Union and imposed 15% tariffs on most EU goods. This move is seen as an attempt to avoid a broader trade conflict between two economic blocs that collectively account for roughly one-third of global trade.
The U.S. Dollar Index remains near its highest level in two weeks, raising the cost of gold for investors holding other currencies and putting short-term pressure on prices.
All eyes are now on the upcoming Federal Reserve policy meeting, which begins today and will last two days. Market expectations point to interest rates being held steady, as policymakers assess economic data and inflation dynamics.
