Following a brief dip triggered by the Federal Reserve’s interest rate increase, gold prices swiftly resumed an upward trajectory as geopolitical anxieties and economic uncertainties bolster its status as a safe haven and hedge against instability.
Gold’s brief dip after the Federal Reserve lifted US interest rates by a quarter of a point did not last long, according to Dr Samih Al-Turjuman, chief executive of Evolve Investment Holding, who said the market initially sold the metal before refocusing on the wider economic risks that continue to support it. Speaking to Al Arabiya Business, he said bullion fell to about $4,295-$4,297 an ounce after the announcement, but quickly resumed its upward trend as investors reassessed global financial conditions.
Al-Turjuman said geopolitical tensions and uncertainty over US economic policy are still pushing investors towards gold as a store of value and a hedge against instability. He also said the traditional link between gold-backed exchange-traded fund flows and the price of bullion has shifted, with gold now seen less as a simple safe haven and more as protection against strains in the global financial system.
That view is broadly echoed by market commentary elsewhere. Analysis cited by Orbk suggests gold could end 2026 either above $5,000 an ounce or in a range of $4,500 to $5,000, depending on shocks to markets, central-bank demand and the strength of the dollar. UBS has also projected a move to $5,000 by September 2026, with the possibility of $5,400 if US political and economic risks deepen, while Goldman Sachs has warned that weaker confidence in US institutions could lift prices towards that level as well.
Al-Turjuman said he still sees $4,800 to $5,000 as a plausible year-end target, even after the Fed’s latest move and expectations of another increase later this year. But he cautioned that the route higher is likely to be uneven, with further corrections and volatility along the way. Support from central banks, ongoing diversification away from the dollar and persistent demand for gold-backed ETFs may help keep the metal well bid, even if the pace of gains slows.
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