Gold Price Forecast: Wells Fargo Delivers Massive Upgrade, Sees $6,300 by 2026

Gold trades at $5,050.28 as of writing, gaining 0.38% in the past 24 hours. The metal shows strength across multiple time frames, rising 3.12% over seven days, 11.98% over the past 30 days, and 22.57% over three months. 

This performance comes despite a sharp late-January and early-February correction that triggered single-day losses of as much as 9%. The rebound above the $5,000 psychological level signals renewed momentum after a heavy pullback.

Volatility Tests The Bullish Structure

Gold slipped below $5,000 last week before staging a swift recovery. The move followed an overheated rally that pushed prices into overextended territory. A rebound in the U.S. dollar contributed to the short-term pressure, yet buyers returned quickly. Prices stabilized near prior breakout zones in the mid-$4,600s to $4,700s before climbing again. 

This price behavior highlights resilience during periods of heavy selling. Does the structure still favor continuation? Recent action suggests that market participants continue to defend key levels.

Wells Fargo Delivers A Major Forecast Upgrade

Wells Fargo Investment Institute raised eyebrows on February 4, 2026, after sharply increasing its year-end 2026 gold forecast to a range of $6,100 to $6,300. The revision marked a dramatic jump from its earlier $4,500 to $4,700 outlook, representing a 35% to 40% upgrade in a single move. 

The bank cited expectations for lower short-term interest rates and a growing need to hedge against policy surprises. It also pointed to sustained central bank demand as a core driver behind the revised outlook.

JPMorgan Joins The Bullish Camp

JPMorgan echoed a similar view on February 2, projecting gold at $6,300 per ounce by the end of 2026. The bank emphasized steady demand from both official institutions and private investors, even after recent price swings.

Source: TradingView via X

Analysts argued that the broader backdrop still favors gold, noting that medium-term momentum remains intact. According to the bank, diversification away from traditional assets continues to fuel demand. The message stayed clear: volatility has not derailed the structural trend.

Central Banks Keep Buying Gold

Official sector demand continues to anchor the market. Central banks purchased around 230 tonnes of gold during the fourth quarter, lifting total buying for 2025 to roughly 863 tonnes. JPMorgan now expects central banks to acquire about 800 tonnes in 2026. 

Source: World Gold Council via X

China’s central bank extended its buying streak to 15 consecutive months, raising holdings to 74.19 million ounces. This steady accumulation reflects ongoing reserve diversification efforts across major economies.

Source: State Adm of Forex via X

Investor interest also shows acceleration. ETF holdings increased, while demand for physical bars and coins remained firm. Portfolio allocations into gold expanded as investors sought protection against macroeconomic and geopolitical risks. 

Analysts highlighted that demand levels remain well above historical thresholds needed to keep the market tight, even at elevated prices. The trend underscores gold’s role as a multi-purpose hedge during uncertain conditions.

Macro Data Takes Center Stage

Markets now turn to key U.S. economic data. This week brings a delayed January Nonfarm Payrolls report on Wednesday, with forecasts near 66,000 jobs, followed by the Consumer Price Index release on Friday. 

Source: Forex Factory

These reports carry the potential to shape expectations around the Federal Reserve’s rate path. Volatility may follow. For now, gold holds above $5,000, with major banks signaling that the longer-term trajectory still points higher.