Hyderabad: Gold price forecast strengthened on Tuesday as global prices moved close to $4,175 per ounce. The rally continued for several months, and analysts said a possible US rate cut added fresh support. Bank of America projected an average of $4,538 per ounce in 2026. It also said gold could touch $5,000 if macro conditions stay favourable.
International prices held firm after a strong Monday session. Gold gained nearly 2 per cent earlier and extended those gains because yields weakened and uncertainty increased. MCX prices rose more than 1 per cent as domestic markets tracked global moves. Investors are prepared for a shift in US monetary policy.
Gold price forecast strengthens as Fed signals easier policy
New York Fed President John Williams said a rate cut “won’t hurt the fight against inflation.” His remarks boosted confidence that tightening may be over. The CME FedWatch Tool showed an 81 per cent chance of a December cut. This level stood at 40 per cent last week. Lower rates usually help gold because the metal carries no yield.
Gold crossed $4,000 per ounce for the first time this year. Prices then climbed further. Futures hit $4,014.60 on October 7, 2025. The metal gained 54 per cent this year as uncertainty and inflation lifted demand. A weaker US dollar supported the rally as well.
Bank of America said gold looks “overbought,” yet demand from institutions remains light. The bank believes high debt levels, lower rates and US economic policies could keep gold strong in 2026. However, it warned that a hawkish shift by the Federal Reserve could slow the rally.
BofA also pointed to key pressures shaping metals next year. These include slower Chinese demand, limited supply, tight inventories, growing electrification needs and rising AI-related metal use. Within this backdrop, analysts viewed gold as the metal with the clearest support heading into 2026.