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ICICI Bank Forecasts Gold to Hit $5,000 by 2027 Amid Geopolitical Uncertainty
- •ICICI Bank predicts gold prices could reach $4,600-$5,000 per ounce by the first half of 2027, with $4,200-$4,600 expected for the rest of 2026.
- •Key drivers for gold prices include investment demand, continuous central bank buying, and its role as a hedge against geopolitical, financial, and policy uncertainties.
- •A softening in US real interest rates and the dollar, along with concerns about US fiscal deficit and government debt, are expected to support gold prices.
- •Despite an 8% decline in September due to hawkish US monetary policy expectations and inflation concerns, ICICI Bank believes this short-term pressure won't negate gold's broader strength.
- •For India, domestic gold prices are estimated at 1.40 lakh to 1.60 lakh rupees per 10 grams for the rest of 2026, influenced by global prices and rupee fluctuations.
Key Questions Answered
According to ICICI Bank's research report, gold prices are estimated to remain in the range of $4,200 to $4,600 per ounce for the rest of 2026, and could reach $4,600 to $5,000 per ounce in the first half of 2027.
Gold prices are supported by medium-term investment demand, continuous buying by central banks, and its role as a hedge against geopolitical, financial, and policy uncertainties. Additionally, softening US real interest rates, a weaker dollar, and concerns regarding the US fiscal deficit and high government debt contribute to this support.
ICICI Bank has maintained its estimate for domestic gold prices in India at 1.40 lakh to 1.60 lakh rupees per 10 grams for the remainder of 2026. These prices are primarily influenced by global gold trends and fluctuations in the rupee.
