Metals Focus Forecasts Gold Reaching $5,330 in 2027 Driven by Investment

Metals Focus projected that the average price of gold will reach $5,330 per ounce in 2027, up 16% from the expected 2026 average, considering investment demand as the "primary driver of prices."

The consultancy attributed its forecasts to persistent inflation, heavy government borrowing, and uncertainty surrounding US policies, alongside expectations of US interest rate cuts and continued central bank gold purchases, stating that these factors are driving investors away from dollar-denominated assets. An average of $5,330 means gold prices will set a new record high in 2027.

The report noted that gold futures traded at $4,185.20, up $28.40, or 0.68%.

Gold and silver had recorded gains of 47% and 167% respectively between early October 2025 and their peak in late January, according to the data in the report.

What do these terms mean?

Average Price: The average price of the metal over a period of time, used in forecasts instead of reading a single day's price.

Investment Demand: Purchasing aimed at making a profit or hedging, including funds, bullion, and futures contracts.

Government Borrowing: The debt incurred by governments through issuing bonds, a rise in which drives investors toward alternative assets such as gold.