Gold prices pulled back after reaching record highs, but that decline hasn’t shaken confidence in the precious metal’s long-term outlook. Analysts at RBC and UBS view the latest pullback as a temporary reset, not a reversal. Their forecasts call for prices to bounce back over the next 18 months because the same forces that have driven the recent climb appear likely to continue fueling the rally.
Consumer demand has remained strong. The World Gold Council (WGC) reports record demand driven by heavy bar and coin buying and the fastest ETF inflows in years. Research from JP Morgan shows buyers steadily adding gold as protection against instability in the stock market, and their analysis finds that gold now represents about 2.6% of total private holdings worldwide. Even after gold’s 50% price surge this year, consumers continue to add gold to their portfolios, seeking stability amid concerns over inflation, fiscal strain, and geopolitical tension.
International support has reinforced the rally. Central banks remain a major source of demand—South Korea’s central bank recently announced plans to expand gold reserves for the first time in over a decade. The WGC expects central banks to have officially purchased between 750 and 900 metric tons of gold by the end of 2025, reaching near historic highs.
These forces are converging to keep long-term predictions elevated. Goldman Sachs, UBS, RBC, and industry representatives at the London Bullion Market Association Conference all forecast prices between $4,500/oz. and $5,000/oz. by the end of 2026.
