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Can gold hit US$5,000? Wall Street turns bullish despite US job growth fuelling rate fears
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Zhang Shidongin ShanghaiPublished: 2:00pm, 7 Sep 2026
Gold will probably test US$5,000 an ounce by the end of 2026, as demand from central banks diversifying their foreign reserves remains strong, countering fears of US monetary tightening after strong labour data and a hawkish tone from the Federal Reserve, according to investment banks.
RBC Capital Markets is the latest to join the bullish camp, forecasting US$4,929 by year-end and US$5,296 in 2027. That aligned with Goldman Sachs and State Street Investment Management, which predicted that gold would climb to US$4,900 and US$5,000, respectively. The projections implied at least a 10 per cent gain from current levels.
Gold is back in favour among investors even as expectations mount for higher US interest rates, which traditionally weigh on the non-yielding metal.
The inverse correlation between the yellow metal and borrowing costs is breaking down amid concerns over fiscal discipline and relentless bond sales by the Trump administration, fuelling the so-called debasement trade.
This is a fiscal spending backdrop that potentially favours gold allocations as a strategic monetary hedge
Central banks are ramping up gold purchases to hedge against US Treasuries, whose long-end yields rose to multi-year highs last month.
“In this case, it does not appear to be above-trend GDP [gross domestic product] growth or corporate margins driving higher long-term interest rates,” said Aakash Doshi, a strategist at State Street.
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