Despite a sharp pullback from record highs in recent days, analysts remain broadly bullish on the future trajectory of gold prices. The World Bank has now joined the optimistic camp, forecasting further gains for both gold and silver in the coming year.
In its latest commodity outlook, the World Bank projected that the average gold price in 2026 will hover around $3,575 per ounce. The institution also expects silver to average $41 per ounce next year. World Bank analysts predict a further 5% rise in gold prices by 2026, nearly double the average levels seen between 2015 and 2019.
"Although the pace of gold price increases is expected to moderate, prices in 2026 are still projected to remain more than 180% above the 2015-2019 average," analysts noted. However, the rally in precious metals may come to an end by 2027. The World Bank forecasts that gold will average around $3,375 per ounce in 2027, down more than 5% from 2026 levels, while silver is expected to drop to approximately $37 per ounce, nearly 10% lower than the previous year.
Despite potential selling pressure in 2027, the World Bank still expects gold prices to remain elevated. "In recent months, gold's rally has been primarily driven by investment demand, supported by geopolitical tensions, macroeconomic concerns, and heightened policy uncertainty. A weaker U.S. dollar and recent accommodative monetary policy in the U.S. have further reinforced this trend," the bank's analysts stated.
Even after the recent correction, gold prices have surged more than 50% year-to-date. The last major gold rally occurred in 1979-1980, when prices nearly doubled amid soaring U.S. inflation, oil shocks, a weaker dollar, and geopolitical turmoil. This time, gold's ascent has again coincided with heightened geopolitical risks and dollar weakness, though inflationary pressures and energy market volatility have been less severe compared to the 1979-80 period. Instead, a defining feature of this rally has been unprecedented central bank buying.
The World Bank is even more optimistic about silver next year, as both investment and industrial demand are expected to drive prices higher. "Silver demand is projected to grow steadily, reflecting its dual role as a safe-haven asset and a critical input in fast-growing industries such as renewable energy and semiconductor production," the bank noted.
Analysts also highlighted upside risks to their forecasts. "Although geopolitical tensions and policy uncertainty have eased somewhat in recent months, any renewed escalation—such as trade disputes, higher tariffs, or worsening conflicts—could trigger additional safe-haven inflows, pushing gold and silver prices above current projections. Unexpected financial turbulence could also lift precious metals prices further."
On the other hand, analysts cautioned that a de-escalation in geopolitical tensions and hawkish monetary policies could weigh on both safe-haven and investment demand for gold and silver.