The festive lights of Diwali may have faded, but gold’s glitter shows no signs of dimming. According to a new report by global financial institution HSBC, gold’s upward momentum is expected to continue well into 2026, dismissing speculation of a post-Diwali price correction.
As per HSBC’s latest projections, gold has already surpassed $4,300 per ounce in the international market and was trading around $4,362 per ounce as of October 18, 2025 — signalling sustained investor confidence. The bank now expects gold to climb to $5,000 per ounce by the first half of 2026, nearly $1,000 higher than current levels.
HSBC attributes this bullish outlook to rising geopolitical tensions, global economic uncertainty, and increased demand from long-term institutional investors who view gold as a secure asset rather than a short-term profit opportunity.
Earlier, HSBC had projected an average gold price of $3,355 per ounce for 2025 but has now raised it to $3,455. For 2026, the forecast has been sharply upgraded from $3,950 to $4,600 per ounce, reflecting growing confidence in gold’s sustained strength.
Why Gold Prices Are Rising
According to a report by The Times of India, several key factors are fuelling this rally:
- Central banks are increasing gold reserves globally.
- Investments in gold-backed ETFs are growing.
- Expectations of U.S. interest rate cuts are strengthening.
- Trade tensions and geopolitical risks are pushing investors toward safe-haven assets.
Recently, spot gold logged one of its fastest weekly gains since December 2008, crossing the $4,300 per ounce mark. HSBC expects prices to stay elevated until early 2026, with minor corrections possible later in the year.
Other Global Forecasts
HSBC’s bullish stance aligns with predictions from other major institutions:
- Bank of America and Societe Generale also see gold hitting $5,000 per ounce in 2026.
- ANZ Bank expects gold to reach $4,600 by June 2026, followed by a moderate decline.
With such forecasts from leading global banks, analysts say a steep fall in gold prices after Diwali appears highly unlikely. Instead, gold may continue to shine as one of the most resilient assets amid ongoing global uncertainty.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
