Baku: The World Bank has raised its forecasts for gold prices for 2026 and 2027, APA-Economics reports, citing the Bank.
According to Azeri-Press News Agency, the average price of gold is expected to reach 4,700 US dollars per troy ounce in 2026. This represents a 37% increase compared to 2025. Compared to the World Bank’s previous forecast from October 2025, the expected gold price for 2026 has been increased by 1,125 dollars.
The average price of gold is expected to be 4,300 US dollars in 2027. This figure is 925 dollars higher than the previous forecast, but represents an approximate 9% decrease compared to 2026.
The forecast notes that gold prices rose sharply in the first quarter of 2026, exceeding 5,000 dollars in February, but later declined somewhat amid profit-taking, weaker inflows into ETFs (exchange-traded funds), and expectations of delayed interest rate cuts.
According to the World Bank, the increase in gold prices is mainly driven by heightened geopolitical tensions, rising safe-haven demand, and speculative investment flows. At the same time, purchases by central banks remain one of the key factors supporting prices.
During the forecast period, investment demand is expected to remain strong, particularly with continued inflows into gold-backed ETFs. However, it is noted that jewelry demand is likely to weaken amid high prices.
The World Bank emphasizes that a further escalation of geopolitical tensions could push gold prices above forecasts, while persistently high interest rates and a stronger dollar could put pressure on prices.