Gold Remains in the Spotlight Amid Uncertainty
Gold is set to remain firmly in the spotlight in 2026 as investors brace for a year of strong risk-asset performance accompanied by rising uncertainty, according to Standard Chartered’s latest global outlook. The report notes, “We remain Overweight on gold, with 3- and 12-month price targets at USD 4,350/oz and USD 4,800/oz, respectively. Ongoing Emerging Market (EM) central bank demand and supportive macro conditions should sustain gold’s rally.”
It expects gold to extend its multi-year rally, supported by sustained central bank buying, a weaker US dollar, and the re-emergence of gold’s inverse relationship with real bond yields. Elevated geopolitical and macroeconomic risks are reinforcing gold’s role as a key portfolio diversifier.
Gold vs. Equities: A Relative Bargain
While gold prices are already at record highs in inflation-adjusted terms, the bank notes that the metal remains relatively inexpensive when compared with global equities, particularly the US S&P 500. The outlook comes as markets debate whether soaring equity valuations, driven largely by AI enthusiasm, are approaching bubble territory.
Although Standard Chartered does not see conditions resembling past financial crises, higher dispersion across asset classes makes diversification essential. In this environment, gold is expected to act as a stabilizing force should optimism around growth assets falter.
Emerging Market Demand and a Softer Dollar
The report highlighted that emerging market central banks continue to diversify away from the US dollar, and gold remains their preferred reserve alternative. This trend provides a strong, price-insensitive source of demand that underpins the market even during bouts of volatility.
Additionally, the USD is expected to weaken over a 6-12 month horizon as the Federal Reserve cuts rates further and the US yield advantage narrows. A softer dollar boosts gold prices by making the metal cheaper for non-US buyers and reinforcing its role as a currency hedge.
(This article has been syndicated from ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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