Throughout 2025, the same factors already drove gold prices to multiple records, with its last peak set at $4,549.71 an ounce on Boxing Day. For the calendar year, gold was among the best-performing commodities, with a gain of nearly 65%.
That strong momentum is likely to extend into this year, analysts said, noting the geopolitical factors in play that could further raise the metal’s safe-haven appeal. Specifically, the bank pointed to the events in Venezuela over the weekend as a potential trigger of gold buying.
The same sentiment is being echoed by those at Bank of America. Also on Monday, analysts led by Michael Widmer, its head of metals research, said gold will remain a key portfolio hedge in 2026, projecting its price to average $4,538 per ounce through the year.
“Gold continues to stand out as a hedge and alpha source,” Widmer said in a Monday report, citing tightening market conditions and strong earnings sensitivity. “Whichever portfolio you’re looking at, whether it’s a central bank portfolio or an institutional portfolio, they can benefit from diversification into gold,” he noted.