Shocking Forecast: How High Could Gold Prices Go in 2026

**Islamabad (Qudrat Daily):** Recent declines in gold prices have sparked a debate over whether the downward trend marks the end of a year-long surge or is merely a temporary correction. Gold fell below **$4,000 per ounce** from its peak of **$4,400**, but rebounded in early November with an increase of around **6 percent**.

In 2025, gold prices recorded a **cumulative increase of over 60 percent**, maintaining strong performance over the past five years. Growth was **27 percent in 2024** and **over 13 percent in 2023**, while 2021 and 2022 experienced minor declines.

According to **Goldman Sachs**, gold demand is expected to remain strong in 2026, largely due to **economic uncertainty in the United States** and a **weakened US dollar**.

Although the US economy appears robust overall, significant weaknesses persist in the employment sector. **ADP data** shows that only **10,000 new jobs** were created in the last three months, down from over **100,000 per month** at the start of the year. In October, over **153,000 employees were laid off**, **175 percent higher** than the previous year. In 2025, **40 percent of companies** cut staff, and in 2026, **60 percent of firms plan layoffs**. The unemployment rate has risen to **4.4 percent**, while inflation is again trending upward.

New tariff policies under US President **Donald Trump** have increased import costs, pushing the **CPI inflation rate** from **2.3 percent in April to 3 percent in September**. These developments have put pressure on the **Federal Reserve**, which faces the dual task of preserving employment while controlling inflation. The Fed cut interest rates by **0.25 percent in September and October**, and there is an **87 percent likelihood of further cuts in December**.

Meanwhile, the **growing US national debt**, which reached **$38.3 trillion** by November 18, raises concerns that foreign central banks may slow their US bond purchases.

All these factors have **weakened the US dollar** and pushed **Treasury yields lower**. The **10-year yield** fell from **4.77 percent in January to 4.03 percent**, while the **Dollar Index** dropped from **109 to 99.5**.

Experts say that if these trends continue, **gold could remain an attractive investment asset for 2026**.