Gold prices are experiencing significant upward momentum, partly driven by increasing central bank demand and the metal's reputation as a hedge against recession and geopolitical risk. Goldman Sachs has set a mid-2026 price target of $4,500, reflecting bullish market sentiment. Analysts are adjusting targets higher due to unexpected flows, with many now predicting even increased prices, particularly as investor interest rises. However, caution is advised as the market remains volatile.

As economic uncertainty rises amid trade tensions with China and potential U.S. recession, investors may flock to gold as a safe-haven asset. This shift could lead to an increase in gold prices.

Amid fears of US dollar depreciation and instability in global economics, hard assets like gold are regaining significance as safe havens. Investors are advised to consider gold as a buffer against economic downturns and inflation risks.