WisdomTree: These 5 looming risks could send gold prices soaring into 2026
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Gold could be headed for a major rally over the next year due to a mix of global economic and political factors, according to a new outlook from asset management firm WisdomTree. The company highlights five key risks that investors should keep a close eye on, all of which could push gold prices significantly higher by the middle of 2026, as per a Seeking Alpha report.
Gold Set for Major Rally as WisdomTree Flags 5 Key Global Risks
The threats consist of continued trade uncertainty, increasing government indebtedness, political pressure on monetary policy, increasing geopolitical tensions, and uncertain US dollar policy, according to the report. Collectively, these pose what WisdomTree refers to as a "loading the spring" moment, positioning for an explosive increase in the value of gold, as per the Seeking Alpha report.
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Trade Uncertainty Keeps Gold in Demand
Trade tensions continue to be a key issue. Although most of the tariffs levied under US president Donald Trump recently are lower than they were initially anticipated, according to WisdomTree, they are still significant departures from past policy and lock gold solidly into place as a safe-haven asset in uncertain times, as per the Seeking Alpha report.
WisdomTree said, "Gold remains a hedge against adverse trade developments," and while Trump's finalised tariffs are generally lower than initial headline figures, "they still present a notable shift from the status quo," as quoted in the report.
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Soaring Debt Levels Could Boost Gold Further
Even the increasing government debt is a concern, particularly in the United States, as "historically, rising government indebtedness has correlated with higher gold prices, particularly as concerns mount over debt sustainability and potential policy interventions," reported Seeking Alpha, citing WisdomTree.
Fed Independence May Be Tested
Political pressure on monetary policy is a red flag, and WisdomTree cautions that the US Federal Reserve might come under increasing pressure because of expanding debt, as per the report. This could result in policies further undermining the dollar, which would serve to support gold's use as a hedge, according to Seeking Alpha.
Geopolitical Risks Add More Fuel to the Fire
Geopolitical risks are also a key area of concern, with ongoing tensions and conflict in Iran and Ukraine, which can cast their shadows over markets, underscoring gold's status as an asset for safety during uncertain times, as per the Seeking Alpha report.
Dollar Policy Uncertainty Adds to Gold's Appeal
Even the Trump administration's policy on the dollar is still unclear, so that could drive the gold price to new highs, and WisdomTree's analysts wrote that, "although no official dollar debasement policy exists, actions taken by the administration suggest a soft-dollar approach," as quoted in the report.
Gold Price Target Raised: $3,850/oz by Q2 2026
WisdomTree predicted that gold will hit $3,850/oz by Q2 2026, "based on consensus macroeconomic inputs, [with] the current period as a 'loading the spring' phase, setting the stage for a powerful upward movement in gold prices," but $5,355 gold by the end of June 2026 would be a conservative target if Trump pursues an explicit policy of dollar depreciation, as reported by Seeking Alpha.
FAQs
How high could gold go by 2026?
WisdomTree sees gold reaching $3,850/oz by Q2 2026 and possibly $5,355/oz if the US weakens the dollar.
Are there investment options for gold besides buying bars?
Yes. ETFs like GLD, IAU, and GDX let investors gain exposure to gold through the stock market, as per the Seeking Alpha report.
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