Gold (XAUUSD) is down by about 1% on Tuesday and is now below $4,200 per troy ounce as the stock market rebounds from a gloomy November. The precious metal is widely viewed as a safe-haven asset that acts as a store of value during times of economic uncertainty.
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If riskier assets, like stocks, are performing well, investors may choose to sell off safe-haven assets in order to capture higher returns. Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are up by over 0.5% at the time of writing.
Wall Street Bullish on Gold for 2026
At the same time, gold is still up by 60% in 2025 and is on track for its best year since 1979. Several Wall Street firms expect the strong performance to extend into 2026.
Bank of America sees the precious metal trading as high as $5,000, supported by factors like rising government debt, higher inflation, and lower interest rates. Furthermore, UBS forecasts gold trading at $4,500 by the second quarter of 2026, while Deutsche Bank has a year-end price target of $4,450.
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