Gold expected to reach $5,330 in 2027 due to inflation and the US deficit

The company said that the average price of gold could reach $5330 per ounce in 2027

Precious metals consultancy Metals Focus has predicted that gold prices will hit new record highs in 2027, as investors look for alternatives to traditional dollar-denominated assets, amid continued inflationary pressures, growing fiscal deficits in the U.S. and policy uncertainty.

The company said in its annual report that the average price of gold could reach $5,330 an ounce in 2027, up nearly 22% from current levels, but noted that the prospect of the Federal Reserve continuing to tighten its monetary policy to counter inflation, which is still above the target level, could put pressure on prices in the near term.

Spot gold hit a record high of $5,594.82 an ounce in late January, but has since fallen about 25% due to rising energy prices and the Federal Reserve’s tightening of monetary policy, while prices are currently trading near $4,152.27 an ounce.

Metals Focus predicted silver prices to rise over the next 12 to 18 months, taking advantage of the same macroeconomic factors that support gold, and said that renewed investor interest, rather than tight supply in the actual market, will be the main factor supporting the gains, expecting the average price of silver to exceed $90 per ounce in the fourth quarter of 2027, compared to $70 in the fourth quarter of 2026.

On platinum, the company expects the market deficit to remain supported by a decline in actual supply, and expects it to average $2,060 per ounce in 2027, with an annual deficit for the fifth consecutive year.

Palladium forecasts it to average $1,330 an ounce in 2027, citing weak demand from the automotive sector, improved mine supplies and increased recycling volumes.