Gold price forecast: Central banks and Asian demand may drive prices to $5,000 - BusinessLine

AI desk brief

NDB Wealth Management sees gold staying elevated at USD 4,200-5,000/oz over the next 12-24 months, with central bank purchases and strong Asian demand increasingly overpowering the traditional Fed/rates driver. Spot was at USD 4,118.91/oz, down USD 5.82 (-0.14%) at the time of the report.

The report cites Q2 2026 central bank buying of 289t and nearly 70t of net inflows into Asian gold funds in H1 2026, versus North American fund outflows of around 61t as higher US real yields and a firmer dollar weighed on Western demand. NDB also points to limited supply: global mine production is forecast to rise just 2.4% to 3,907t in 2026, while the WGC is projecting about 850t of central-bank buying this year, close to 2025’s 863t.