Gold has started 2026 on a strong note, moving above $5,000 an ounce and briefly touching the low $5,100s. After massive gains in 2025, the metal is still climbing, and some analysts believe there is still room to grow.
Central banks remain committed buyers of gold, adding substantial amounts to their reserves despite record high prices. Poland, Kazakhstan, and Brazil have been among the most active purchasers, while China has maintained steady accumulation for over a year. This official sector demand provides crucial support for the market because these purchases are driven by policy objectives rather than short-term price movements.
Investment demand is showing up in funds as well. Gold-backed ETFs saw heavy inflows last year. Expectations for lower U.S. interest rates may keep that support in place, since the cost of holding a non-yielding asset falls as rates drop. For many portfolios, gold is also a counterweight when equity markets feel expensive, and it often appeals to investors looking for a hedge during times of political tension, trade uncertainty, and policies in flux.
While jewelry demand has softened due to high prices, the combination of institutional buying, safe haven appeal, and strategic reserve diversification keeps the fundamental picture strong. Interest in small bars and coins remains strong in places like India and parts of Europe.
Some forecasts now point toward $6,000 an ounce this year, while others allow for much higher peaks. A sudden shift in rate expectations or calmer headlines could spark a pullback. Still, the main forces behind the rally remain in play overall for now.