Société Générale Predicts Gold Surge to $5K, Undermining Dollar and Bonds
Société Générale, a leading European bank, has doubled down on its bullish outlook for gold, forecasting a rise to $5,000 per ounce by 2026. The bank argues that Gold will outperform both the US dollar and bonds, citing persistent dollar weakness and Federal Reserve rate volatility as key drivers. Analysts recommend a 10% portfolio allocation to gold while reducing exposure to dollar-denominated assets.
The US dollar's decline shows no signs of abating, with the DXY index potentially testing the 94-97 range before any recovery. Investors are increasingly diversifying into gold, accelerating its upward trajectory. Société Générale's call reflects a broader loss of confidence in traditional fiat instruments amid macroeconomic uncertainty.