Expert reveals whether gold will shine again in 2027, as $8,000 price forecast raises questions.1

As 2026 enters its final quarter, gold has retreated from its record high earlier in the year, leaving some institutional forecasts out of reach. Rick Kanda, Managing Director at The Gold Bullion Company, shares his outlook for the precious metal in 2027 and assesses whether prices could climb to $8,000 per ounce, as some commentators suggest.

“After a record-breaking 2025, the price of gold continued its strong performance into early 2026, reaching a record high of approximately $5,560 per ounce in January. Since then, the price has pulled back and traded around $4,185 per ounce on 12 October, below several institutional year-end forecasts.

“J.P. Morgan forecasts that gold will average $6,000 per ounce in the final quarter of 2026, while Goldman Sachs has forecast a year-end price of $4,900. Both targets are above the current market price.

“Although some investors may view the recent pullback negatively, it is important to put the correction into perspective. Gold remains at an elevated price compared with historical levels, and a period of consolidation following a sharp rally is not necessarily a sign that its longer-term prospects have deteriorated.”

What factors have prevented gold from reaching further highs in 2026?

A stronger US dollar. “Gold is priced internationally in US dollars, so a stronger dollar can make the metal more expensive for buyers using other currencies. This can weigh on demand and put downward pressure on prices, although the relationship is not always straightforward.”

Profit-taking among investors. “Following the substantial gains recorded in 2025 and early 2026, some investors may have chosen to lock in profits. Changes in the economic outlook, a stronger dollar and shifting expectations around interest rates can also prompt investors to reassess their positions, contributing to price volatility and further selling.”

Federal Reserve policy and interest rates. “Persistent inflation and elevated energy prices have complicated the outlook for US monetary policy. When markets anticipate higher interest rates or yields, gold can become less attractive relative to interest-bearing assets because it does not pay interest. However, gold prices are influenced by several factors, including geopolitical uncertainty, investor demand and central-bank purchases, so interest rates alone do not explain the recent correction.”

What is in store for gold in 2027, and could prices reach new highs?

“As 2027 approaches, investors will increasingly focus on the outlook for the next 12 months. Some forecasts remain bullish, with J.P. Morgan expecting gold to move towards $6,300 per ounce by the end of 2027.

“An $8,000 price target would represent a substantial further increase from current levels. While I recognise the factors supporting gold, I believe this target is overly optimistic. My expectation is that gold could trade between $5,000 and $6,300 per ounce in 2027, although this will depend on how economic conditions, monetary policy and investor demand develop.

“One of the key factors supporting gold’s longer-term outlook is continued central-bank buying. Countries have been adding to their gold reserves as part of efforts to diversify their holdings and reduce their reliance on individual reserve assets, including the US dollar.

“However, gold’s performance in 2027 will depend on whether this demand continues, how interest rates and the dollar evolve, and whether investors maintain their appetite for safe-haven assets. Although further gains are possible, forecasts should be treated as estimates rather than guarantees.”