Is it possible for gold to reach $6,000?

Early in 2026, gold prices saw sharp increases

Will gold continue to rise, or is it falling victim to its own prosperity?

As 2025, the year with the greatest gold price increases since 1979, came to an end, everyone who followed the precious metal wondered if the price would reach £5,000 per troy ounce in 2026. Track all markets on TradingView.

In a report released in November of last year, Deutsche Bank analysts predicted that the price of gold would reach an agonizingly close peak of £4,950 over the course of the year. Gold closed at £4,163 on the day the report was released, which at the time seemed optimistic, if not wildly so.

In fact, the gold price cleared the upper end of Deutsche Bank's forecast range for the year in just 23 days in 2026. On January 26, the next trading day, gold crossed the £5,000 threshold for the first time. Three days later, it reached £5,500. On the morning of January 29, gold prices even momentarily exceeded £5,600.

Therefore, it seems reasonable to ask whether gold might soon surpass the £6,000 mark, even though it would have seemed nearly unrealistic a month ago.

Gold is boosted by de-dollarization and tensions in Iran.

The US dollar's decline and heightened geopolitical tension, particularly in relation to a standoff between the US and Iran, were the two main causes of gold's sharp increase during the week starting on January 26.

Gold is typically valued in US dollars. The price of gold increases when the dollar loses purchasing power because it takes more of them to purchase an ounce of gold. For this reason, gold is frequently regarded as an inflation hedge.

The US dollar index measures how strong the US dollar is in comparison to a basket of other major world currencies, such as the euro, the Japanese yen, and sterling. As of January 29, it has dropped by almost 2% through 2026.

US president Donald Trump boosted gold prices on 27 January when he appeared to dismiss concerns over the currencys slide, telling reporters that "the dollars doing great".

Gold is also viewed as a hedge against geopolitical instability, and once again Trump has been at the centre of an upward ratchet on that front. With the USS Abraham Lincoln aircraft carrier entering the Middle East this week, the president has escalated threats to attack Iran for the second time in his one-year second term.

"US naval and air forces are building up in the Gulf as the US has ratcheted up threats on Iran," stated Wealth Club chief investment strategist Susannah Streeter. "President Trump has warned that the US is ready to act, if Tehran does not reach a nuclear agreement. A "

The USS Abraham Lincoln is a Nimitz-class aircraft carrier.

According to reports, the USS Abraham Lincoln aircraft carrier is a member of the US armada that is converging on Iran, escalating tensions and driving up the price of gold.

Drivers of long-term gold prices.

Although gold has seen tremendous gains in the first part of 2026, this is just the latest phase of an ongoing bull run.

The price of gold has more than doubled in the past 12 months.

Increased gold purchases by international central banks, especially after Russian assets were frozen in reaction to Russia's invasion of Ukraine, served as the first impetus for this rally.

According to Lousie Dudley, portfolio manager for global equities at Federated Hermes, "the rally has been striking, fuelled by bullish sell side views, sustained central bank buying, and a sense among investors that they remain under-allocated to the asset."

However, Dudley cautions that the increase might begin to erode the allure of gold that has made it shine.

"Some worry that gold is now drifting into the broader risk-on trade," the speaker stated. "Questions about whether gold is still acting as a reliable hedge in a risk-off environment" are raised by its rise in line with industrial metals.

Even so, there is a strong case to be made for holding some gold in your portfolio. Read our guide on gold investing if you think you are underexposed.