Amidst the continuous fluctuations in gold prices, a shocking report of the World Gold Council (WGC) has come out. The World Gold Council (WGC) said on Thursday that by 2026, gold prices may increase by 15 to 30 percent from the current level. Looking ahead to 2025, gold saw strong demand amid US tariffs and other geopolitical uncertainties. People invested heavily in gold as a safe haven asset, due to which its price increased by about 53 percent.
What was said in the report?
The WGC report said, “Falling yields, rising geopolitical tensions and a clear trend towards gold for safety will create a very strong support system for gold, due to which its price will rise rapidly. In this situation, the price of gold could increase by 15 to 30 percent from the current level by 2026.” During this period, there will be strong demand for gold as an investment, particularly through gold exchange-traded funds (ETFs), which will balance weakness in other areas of the market such as jewelery or technology.
Inflow increased in gold ETFs
According to WGC data, global gold ETFs have seen inflows of $77 billion so far in CY25, increasing their holdings by more than 700 tonnes. The report further said, “Even if we move the starting point to May 2024, total gold ETF holdings have increased by approximately 850 tonnes. This figure is less than half of the previous gold bull cycle, showing plenty of room for growth.” For this to happen, gold prices could fall by 5 to 20 percent in 2026. Under these circumstances, reflation is likely to dominate, leading to increased activity and a stronger path to global growth. As inflation pressures increase, the Fed will be forced to maintain or raise rates in 2026.
