HSBC raises average gold price forecasts for 2025 and 2026
HSBC has raised its 2025 average gold price forecast to $3 355 per ounce from $3 215 due to safe-haven demand driven by geopolitical tensions, economic uncertainty, and a weakening US dollar.
"Sentiment remains bullish as rallies are expected to continue in 2026 aided by official sector buying and institutional demand for gold as a diversifier," the bank said in a note dated October 15.
HSBC also raised its 2026 average gold price forecast to $3 950 from $3 125.
GOLD HITS ANOTHER RECORD HIGH
Mounting fiscal deficits in the US and other major economies are driving increased demand for gold, HSBC said.
Gold, traditionally seen as a store of value during times of economic and geopolitical instability, has risen over 60% so far in 2025, and hit a record high of $4 250.89 on Thursday.
China on Thursday accused the US of stoking panic over Beijing's rare earth controls and said Treasury Secretary Scott Bessent had made "grossly distorted" remarks about a top Chinese trade negotiator, rejecting a US call to roll back the curbs.
"Central bank demand is likely to remain high, buoyed by geopolitical risks and dollar diversification, but below peak 2022-23 levels," HSBC said.
However, if the US Federal Reserve delivers fewer rate cuts than currently projected for this year and next, it could temper the rally, HSBC said.
Investors are pricing in a near-certain 25-basis-point rate cut at this month's Fed meeting, with expectations of another cut in December.
Further, gradual declines in global inflation may dampen jewellery purchases driven by inflationary concerns, HSBC said.
Meanwhile, the bank kept its 2025 average price forecasts for platinum and palladium at $1 215 per ounce and $1 100 per ounce, respectively.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
