A global economic slowdown or worsening geopolitical tensions could trigger a new surge in gold prices, according to the World Gold Council.
"Gold has experienced a remarkable 2025, achieving over 50 all-time highs and returning over 60 percent. This performance has been supported by a combination of heightened geopolitical and economic uncertainty, a weaker U.S. dollar, and positive price momentum," the council said in its Gold Outlook 2026 report.
It stated that both investors and central banks have increased their allocations to gold, seeking diversification and stability.
The report stated that the gold price mostly reflects macroeconomic consensus expectations and may remain rangebound if current conditions persist.
"However, taking cues from this year, 2026 will likely continue to surprise," the council noted.
If economic growth slows and interest rates decline further, gold could see "moderate" gains, it stressed, adding that in a more "severe" downturn marked by rising global risks, gold could perform strongly.
Additional factors such as central bank demand and gold recycling trends are also noted to influence the market. Most importantly, in an environment of continued market volatility, gold's role as a portfolio diversifier and source of stability remains key.
