Gold: As investors protect themselves against market bubbles is expected to continue its 2026 rally Report

Gold: According to Standard Chartered’s most recent global outlook, gold is expected to stay firmly in the limelight in 2026 as investors prepare for a year of good risk-asset performance coupled with increased uncertainty.

“We remain overweight on gold, with 3- and 12-month price targets at USD 4,350/oz and USD 4,800/oz, respectively,” the study said. Gold’s advance should be maintained by ongoing demand from Emerging Market (EM) central banks and favorable macroeconomic circumstances.

With the help of persistent central bank purchases, a declining US dollar, and the resurgence of gold’s inverse connection with real bond rates, it anticipates that gold will continue its multi-year advance.

According to the report, these elements, together with increased macroeconomic and geopolitical concerns, are enhancing gold’s position as a crucial portfolio diversifier.

The bank points out that even though inflation-adjusted gold prices are already at all-time highs, the metal is still reasonably priced when compared to international stocks, especially the US S&P 500.

The forecast is released at a time when markets are debating whether the skyrocketing stock prices, which are mostly the result of excitement for AI, are getting close to bubble territory.

Standard Chartered cautions that increased dispersion across asset classes necessitates diversification even if it does not yet see circumstances that resemble previous financial crises. In this context, gold is anticipated to serve as a stabilizing factor in the event that growth asset euphoria wanes.

It made clear that gold is still the preferred reserve option for developing market central banks as they continue to diversify away from the US currency. Even during periods of instability, the market is supported by a robust, price-insensitive source of demand thanks to this ongoing trend of diversification.

According to the analysis, as the US yield advantage shrinks and the Federal Reserve continues to decrease rates, the USD is expected to decline over a six- to twelve-month period.

Significantly, a weaker dollar raises the price of gold by lowering the metal’s cost to non-US consumers and enhancing its value as a currency hedge.