Société Générale forecasts gold prices to reach $5,250 per ounce

Société Générale has issued bullish forecasts for gold prices, projecting an average of $4,500 per ounce in 2026 and reaching a peak of $5,250 in the third quarter of 2027. The bank attributes this potential growth to a ‘debasement trade,’ driven by geopolitical fragmentation and concerns regarding United States fiscal credibility.

Analysts note that central banks are increasingly purchasing gold while reducing their exposure to U.S. Treasury debt. This shift is part of a broader trend where gold serves as a hedge against political, currency, and fiscal risks. Central bank purchases reached a record 289 tons in the second quarter, and gold is expected to account for 27 percent of global reserves by the end of 2025.

Other major financial institutions, including JPMorgan, UBS, and RBC, have also suggested scenarios where gold prices could reach between $5,000 and $6,000 per ounce during 2026–2027, supported by inflows into gold ETFs and continued central bank demand.