Barclays: Spot gold to rebound to $4,900 as geopolitical tensions ease
Svmuu News: Barclays believes that the sell-off in gold triggered by the Middle East conflict is not a trend reversal, but rather a market reset. The bank noted that the sharp strengthening of the U.S. dollar, the shift of risk capital from defensive assets to the stock market, and excessive concentration of positions have accelerated the decline in gold prices. Barclays estimates that the combined impact of the stronger dollar and a 10% rise in the S&P 500 index caused gold prices to fall by about 10%, with the remainder of the decline attributable to position unwinding. Gold is currently trading near the bank’s fair value estimate of $4,150. Barclays maintains its gold price forecasts of $4,791 and $4,900 per ounce for 2026 and 2027, respectively, but acknowledges that these forecasts face some downside risks in the short term. The bank believes that persistent inflation, policy uncertainty, and central banks’ continued efforts to diversify foreign exchange reserves are structural factors underpinning the long-term bullish trend, while a re-established weakening of the U.S. dollar and the resumption of sustained central bank purchases are the two key conditions driving a rebound in gold prices.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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