WisdomTree: gold could reach $4,000 per ounce by early 2026

Gold's appeal as a safe-haven asset has weakened slightly following the US-China agreement to pause their trade standoff for 90 days. However, WisdomTree market strategist Nitesh Shah believes the metal will maintain its value. With global financial markets still facing significant geopolitical instability, Shah notes these conditions should continue to support gold prices.

As Shah believes, the policy of the US Federal Reserve (Fed) could also affect gold prices. Fed Chairman Jerome Powell is facing heavy criticism from President Donald Trump as the regulator shows no hurry to ease monetary policy. The metal could see a significant price increase if the Federal Reserve loses its independence.

According to the strategist's baseline forecast, gold prices could reach $4,000 per ounce in the first quarter of 2026. Shah notes that demand for the precious metal should remain strong amid increasing recession risks and accelerating inflation in the United States.

However, the strategist also acknowledges potential downside risks. Nevertheless, under current market conditions, any price weakness is likely to remain limited.