Gold Could Hit $3,000 Soon and $4,000 in 2026, Market Pro Says – Here’s Why

Gold prices are on track to hit $3,000 per ounce in the near future, with analysts predicting an even higher target of $4,000 by 2026. The gold market rally is fueled by a combination of inflation concerns, tariff uncertainty, and global central banks accumulating gold as a hedge against U.S. sanctions.

Trump’s Tariffs Reshape Global Markets

On February 7, 2025, President Donald Trump announced plans for reciprocal tariffs, escalating his strategy to restructure global trade in America’s favor. Unlike a flat 10%-20% tariff on all imports, Trump’s approach allows for individual tariff negotiations with trading partners.

While some view this as a negotiation tool, the U.S. stock market and bond market reacted with volatility. Investors fear that higher import tariffs could drive consumer prices higher, potentially reigniting inflation and forcing the Federal Reserve to maintain or even raise interest rates.

Gold Surges on Inflation and Economic Uncertainty

Following Trump’s announcement, gold prices surged to new record highs. Market analysts believe that rising inflationary pressures, combined with economic instability, are pushing investors toward gold as a safe-haven asset.

Additionally, the demand for physical gold is increasing as central banks—particularly in countries facing U.S. sanctions—continue to stockpile gold reserves. This trend has been ongoing since the U.S. froze Russia’s international reserves following its invasion of Ukraine in 2022.

Market expert Ed Yardeni predicts that this gold accumulation will continue, driving prices toward $3,000 in 2025 and possibly reaching $4,000 per ounce in 2026.

Copper and Bitcoin Reactions

While gold prices have surged, other assets have shown mixed reactions:

• Copper Prices: Although some believe that rising copper prices indicate economic growth in China, market analysts remain skeptical. China’s 10-year bond yield has fallen to record lows, signaling continued economic weakness.

• Bitcoin Performance: The gold rally has outperformed Bitcoin in recent weeks. With the market uncertainty triggered by Trump’s tariff policies, investors appear to be shifting away from riskier assets like Bitcoin in favor of physical gold.

Is Gold Headed for $4,000?

Given the ongoing geopolitical tensions, rising inflation, and increased central bank gold reserves, analysts believe that gold’s bull market is far from over. If current trends continue, $3,000 per ounce could become reality in 2025, with further upside toward $4,000 by 2026.

With tariff wars, inflation, and economic uncertainty driving market trends, investors are keeping a close eye on precious metals as a wealth protection strategy.

Source: MarketWatch
Written by: Ed Yardeni and Eric Wallerstein, MarketWatch