Gold Targeted for 2026, What Signals from Global Fund Managers?
The current gold price remains comfortably above the psychological level of US$4,000 per troy ounce. In the short term, gold's movement is expected to be influenced by the release of the Fed's meeting minutes (FOMC minutes), the latest comments from Fed officials, and US employment data, which was delayed due to the government shutdown. These three factors will provide a fresh perspective on the direction of interest rates in the near future.
Interestingly, gold's prospects for 2026 are starting to attract more attention from global market players. In a Bank of America survey of approximately 170 investment managers, gold was named the asset with the second-best potential return next year, second only to the yen among major currencies. This means that even though gold has risen by around 55% this year and set a record, many fund managers still see room for further upside.
This support indicates that the fuel for gold's upward trend is not yet exhausted. Investors expect that, amid economic uncertainty and financial market turmoil, gold will remain viewed as a safe haven for storing value. This positive outlook from global fund managers could be a major driver of gold prices going forward, especially if volatility in the stock and bond markets increases again.
However, gold's fate in 2026 also depends heavily on who Donald Trump chooses as the next Fed Chair. Trump has already signaled that he feels he has found a suitable candidate and has repeatedly expressed his desire for lower interest rates. After two rate cuts this year, and with the possibility of another cut next month, the market is starting to consider further easing scenarios in 2026.
If interest rates indeed trend toward looser policy going forward, coupled with the continued trend of gold buying by central banks, this combination has the potential to be a boost for gold prices. For investors, signals from global fund managers, the direction of Fed policy under the new chair, and the actions of global central banks will be three key factors in assessing whether gold is truly worthy of being a portfolio star in 2026. (asd)
Source: Bloomberg
