Published by Global Banking & Finance Review®
Posted on January 8, 2026
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleHSBC predicts gold could hit $5,000 an ounce by 2026 due to geopolitical risks and rising debt, with potential for high market volatility.
Jan 8 (Reuters) - Gold prices could rise to $5,000 an ounce in the first half of 2026 on geopolitical risks and rising debt, HSBC said on Thursday.
However, the bank lowered its average 2026 price forecast for gold to $4,587 an ounce from $4,600, citing risks that rising prices could trigger a correction later in the year.
It added that this correction could be deeper should geopolitical risks subside or if the U.S. Federal Reserve stops cutting interest rates.
"We see a wide range of $5,050-$3,950/oz for 2026 and an end-year price of $4,450/oz," HSBC said, adding that trade is likely to feature high volatility.
HSBC also raised its 2027 and 2028 average price forecasts to $4,625 and $4,700, from $3,950 and $3,630 respectively. The note flagged a 2027 year-end price view of $4,600 and introduced a 2029 average price forecast of $4,775.
Spot gold was trading near $4,427.48 on Thursday after logging a 64% annual gain in 2025, its biggest since 1979. [GOL/]
(Reporting by Anjana Anil in BengaluruEditing by David Goodman)
Gold is a precious metal that has been used as a form of currency and investment for centuries. It is valued for its rarity, durability, and ability to retain value over time.
An investment is an asset or item acquired with the goal of generating income or appreciation. Investments can include stocks, bonds, real estate, and commodities like gold.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and commodities. They play a crucial role in the economy by facilitating capital flow.
Economic growth refers to the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
Currency is a system of money in general use in a particular country or economic context. It serves as a medium of exchange, a unit of account, and a store of value.
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