The gold price is set to race to best-ever levels next year, boosting gold stocks such as Barrick Gold (GOLD) and ETFs linked to the shiny metal.
Price Keeps Shining
Analysts at Bank of America raised their gold price average forecasts for both this year and next, driven higher by the uncertainty around U.S. trade and tariffs policies. The bank now expects gold to trade at $3,063 per ounce this year and soar to a record $3,350 in 2026. This is up from previous forecasts of $2,750 for 2025 and $2,625 for 2026.
It also forecasted that if investment demand increased by 10% and central banks upped their gold reserves, then spot gold prices could even climb higher to $3,500 within the next two years.
The spot gold price has already had a stellar year to date, with spot gold trading at just over the symbolic level of $3,000 and up around 15% since the start of the year. It has largely been powered forward by concerns over President Trump’s economic policies, such as his tariffs tirade against Canada, Mexico, China, and the EU. Continued geopolitical uncertainty in Ukraine, the Middle East, and Taiwan has also fed the appetite of investors for gold.
Risk of Golden Slumbers
That’s because gold has traditionally been seen as a safe haven for investors in troubled times. They have been investing directly into mining giants like Barrick Gold whose share price is up 25% in the year to date and Newmont Mining (NEM) up 28%, or ETFs such as the SPDR Gold Shares ETF (GLD) which is exposed to the physical holding of gold bullion and up 15% since the turn of the year.
However, some of the shine could come off gold if geopolitical tensions, such as a lasting Ukraine ceasefire, eased and tariffs were either reduced or become more targeted and less haphazard.
Is GOLD a Good Stock to Buy Now?
On TipRanks, GOLD has a Strong Buy consensus based on 10 Buy and 3 Hold ratings. Its highest price target is $28.02. GOLD stock’s consensus price target is $23.38 implying an 20.89% upside.
