HSBC Global Research published a report stating that gold prices hit a new high of $2,685 per ounce on the 26th of last month, driven by multiple factors including anticipation of further interest rate cuts by the Federal Reserve and other central banks, economic uncertainty, leading to strong demand from hedge and hedge funds. The increase in US fiscal deficits also boosted gold demand.

The report indicates that the loose monetary cycle continues, but the support for gold prices from further interest rate cuts will gradually decrease. Gold ETFs will continue to see redemptions, while off-exchange and physical cash purchasing demand remains strong. The bank also pointed out that the long positions on the CME Group are high, but may not increase further. Market sentiment appears optimistic, even though the short-term upward trend shows no signs of slowing down, but the rally may be overextended.

The bank raised its gold price forecast and believes that gold prices have entered a new upward trend. The upward trend may slow down next year. The bank predicts that gold prices will be in the range of $2,350 to $2,950 per ounce next year.

The following table shows HSBC Global Research's updated forecasts on gold prices for this year to 2026 and long-term gold price updates.

Year│Latest Average Gold Price Forecast (per ounce)

2024│$2,305->$2,395

2025│$2,105->$2,625

2026│$2,025->$2,515

Long-term range: $2,000 to $2,200.