"This year, gold surged past major thresholds, as the traditional hedge against inflation and macroeconomic uncertainty has been propelled by a preponderance of both. On September 2, gold shot past $3,500/oz, climbing further to $3,600/oz on the Monday following the disappointing U.S. jobs data for August, which raised bets on easier monetary policy. The BofA Commodities team is "bullish," they say, now forecasting the quarterly average price reaching $4,000/oz in the second quarter of 2026, with the spot price already up 4.1% week-over-week to $3,589/oz."
"The global gold sector's total market capitalization has ballooned to just over $550 billion, nearly twice the peaks seen in 2011 and 2020 ($331-$334 billion), more than 8x the 2016 cycle low ($70 billion), and more than 3x the recent cycle low of $170 billion in 2022. This rally, according to BofA, reflects not just price gains. but also investor interest heightened by inflation and sector cost pressures."
Gold surged past $3,500/oz and $3,600/oz in 2025 amid inflation and macroeconomic uncertainty, reaching a spot price near $3,589/oz and rising 4.1% week-over-week. Forecasts project a quarterly average of $4,000/oz in Q2 2026. Central banks have increased purchases as the U.S. dollar weakens and some countries seek alternatives, supporting the rally. The global gold sector market capitalization expanded to just over $550 billion, nearly double previous peaks and multiple times past lows. However, sector valuation measures relative to the broader equity market and historical norms have not uniformly returned to past cyclical peak levels.
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