Gold’s price rose to US$5,090 ($7,354.79) an ounce yesterday, surpassing JP Morgan’s prediction that the price would push towards the US$5,000 per ounce mark by the end of 2026.
As previously reported, JP Morgan Global research forecasts prices to average around US$5,055 an ounce towards the end of 2026 and rise to at least US$5,400 an ounce by the end of 2027.
Over the past month, the precious metal’s price has risen 17.54% and is up 85.78% compared to the same time last year.
Only in mid-October 2025 did gold touch US$4,000 an ounce, as investors sought safety amid rising US-China trade tensions and the ongoing US Government shutdown.
After finishing a strong year in 2025, clocking more than 50 all-time highs, gold’s price has already gained 17% so far in 2026.
Gold is on the rise
According to the Department of Industry, Science and Resources (DISR), gold investment demand, particularly by exchange traded funds, has been high for the past three quarters and is driving demand growth.
Central bank buying remains high by historical standards at around 200 tonnes per year, while jewellery consumption has fallen across all regions, with lightweight and less frequent purchasing driven by price sensitivity.
The World Gold Council reports while 22 karat gold jewellery remains the preferred choice, demand for lower purity jewellery, such as 18 and 14 karat, has seen an uptick. Listed jewellery retailers also saw strong revenue growth ranging from 37% to 51% year-on-year in Q4 2025, supported by festive and wedding demand.
According to Webull Securities Australia CEO Rob Talevski, the global uncertainty dynamics prompting trends has risen in 2026, “creating a perfect storm for ongoing gold demand”, as reported by Mining.com.au.
“2025 Q3 central bank purchases were up 28% on the previous quarter, and the momentum is further fuelled by broad interest bringing volumes to new and existing gold exchange traded fund issues via equity markets,” he says.
DISR reports that high gold prices are expected to lift supply from new and existing mining operations and re-opening of shuttered mines. The largest increases in gold production over 2026 and 2027 is expected in Canada and Indonesia.
Australia’s gold production is forecast to increase to around 340 tonnes in 2025-26 and 369 tonnes in 2026-27, as new projects come online.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
