Gold prices continued their upward momentum on Tuesday as Bank of America (BofA) projected the metal could average $4,538 per ounce in 2026, with the potential to touch $5,000 if strong macroeconomic tailwinds persist.
Global spot gold traded around $4,175 per ounce, supported by rising expectations of a US Federal Reserve rate cut in December. 
According to the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at ₹1,25,342 at mid-day, up from ₹1,23,308 the previous day.
BofA noted that gold remains both &ldquo;overbought&rdquo; and &ldquo;underinvested,&rdquo; adding that institutional allocations continue to be light even as prices surge. 
The bank said a move toward $5,000 could be driven by elevated government debt, persistent inflation, easing interest rates, and unconventional US economic policies that have contributed to gold&rsquo;s historic rally.
The report also flagged slowing Chinese demand, supply constraints in mined metals, and low global inventories as key variables to watch.
However, the bank cautioned that a hawkish shift from the US Federal Reserve could pose the biggest downside risk. 
Market expectations for a December rate cut strengthened after New York Fed President John Williams said cutting rates &ldquo;won&rsquo;t hurt the Fed&rsquo;s fight against inflation.&rdquo;
According to the CME FedWatch Tool, traders now assign an 81% probability to a December rate cut, up significantly from 40% a week earlier. 
Lower interest rates typically boost gold as the metal does not yield returns, reducing the opportunity cost of holding it.
On the Multi Commodity Exchange (MCX), gold futures for December delivery were up 1% at ₹1,25,106 per 10 grams during early trade. 
Silver prices also rose, with MCX December contracts up 1.34% at ₹1,56,551 per kg.
&mdash;IANS

Gold bars stacked with rising market chart

BofA predicts gold could average $4,538 in 2026 and rally to $5,000 amid macro tailwinds

Gold May Hit $5,000 In 2026: Report

BofA predicts gold could average $4,538 in 2026 and rally to $5,000 amid macro tailwinds

November 25, 2025 | 17:09 IST