Wells Fargo Bullish on Gold's Continued Rally Fueled by Inflation and Deficits

Wells Fargo has lifted its gold price forecast for the end of this year to $5,300-$5,500 per ounce, projecting a rise to $5,800-$6,000 by 2027. The bank acknowledges the risk of prices falling below $4,000 but stresses structural factors supporting the bull market. Spot gold currently trades at $4,357.10, down more than 20% from January peaks.

Sameer Samana cited persistent inflation, fiscal deficits, and geopolitical uncertainty as key drivers, noting central banks seek alternatives to Treasuries for reserves. Darrell Cronk highlighted geopolitics and resource competition shaping 2026, with inflation staying above pre-pandemic lows.

Samana described gold as a high-convexity idea since policymakers favor easy solutions. The bank is also constructive on industrial metals amid AI spending and electrification trends.