Gold (GC=F) retreated more than 2% on Tuesday amid a broader market sell-off, but the recent volatility may be temporary as Wall Street analysts see the precious metal reaching new highs in 2026.

Gold futures hovered around $4,900 as Asian markets closed for the Chinese New Year. Meanwhile, Iran and the US reached a “general agreement” on a possible nuclear deal, easing tensions in the Middle East.

“Despite short-term softness, the structural drivers supporting gold remain firmly in place,” Ole Hansen, head of commodity strategy at Saxo Bank, said.

The strategist highlighted central bank buying, geopolitical fragmentation, and portfolio diversification as key factors driving gold’s safe-haven appeal amid concerns over currency debasement.

“Together, these forces suggest that, although corrections are inevitable after parabolic advances, the broader bull trend remains intact,” wrote Hansen.

Goldman Sachs analysts reiterated a significant upside risk to their forecast for gold of $5,400 per troy ounce by the end of 2026.

“We see upside risk to our $5,400 Dec26 forecast from private sector diversification,” analyst Lina Thomas and her team said in a note earlier this month.

COMEX - Delayed Quote • USD

(GC=F)

Follow    



  View Quote Details

4,896.60 -149.70 (-2.97%)

As of 11:53:15 AM EST. Market Open.

GC=F SI=F

Advanced Chart

“We estimate that every 1bp increase in the gold share of US financial portfolios—driven by incremental purchases—raises prices by 1.5%,” she added.

Investors also expect the Federal Reserve to cut interest rates this year, with Polymarket odds favoring two to three decreases.

Lower interest rates could put downward pressure on the greenback, which in turn would send the price of commodities invoiced in dollars higher.

UBS analysts said in a note earlier this month that “lower US real interest rates, persistent geopolitical worries, and policy uncertainty should continue to drive demand for gold.”

And in a Bank of America fund manager survey released Tuesday, 50% of respondents said “long gold” was the most crowded trade in February for the second month in a row.

The precious metal has been volatile since its rally came to halt in late January, with futures dropping sharply from a high of $5,600. Recent market sell-offs in the commodity complex also sent silver tumbling from its all-time highs in January.

Silver (SI=F) is down 4% year-to-date, while gold has gained 12%.

Gold futures retreated on Tuesday, but strategists are still bullish on the precious metal this year. REUTERS/Hiba Kola · Reuters / Reuters

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.