Top bank revamps gold price target for rest of 2026

Group 1: Gold Price Outlook - Wells Fargo has raised its year-end 2026 gold target to $6,100 to $6,300 per ounce, a significant increase from the previous target of $4,500 to $4,700, representing a $1,600 upward adjustment or nearly a 35% hike [1] - Current spot price of gold is approximately $4,961, indicating a potential upside of 23% to 27% based on Wells Fargo's new target [1] - Other financial institutions have also set their gold price targets for 2026, with J.P. Morgan at $6,300 (+27%), UBS at $6,200 (+25%), Deutsche Bank at $6,000 (+20.9%), and Goldman Sachs at $5,400 (+8.8%) [5] Group 2: Market Sentiment and Tech Sector - The market sentiment towards gold is contrasted by a significant selloff in tech and AI stocks, which has resulted in nearly $1 trillion lost in software and services stocks over the past week [2] - Investors are increasingly skeptical about AI as a long-term profit engine, with major AI stocks like Amazon experiencing a 9% decline after announcing nearly $200 billion in capital spending through 2026 [3] Group 3: Demand Factors for Gold - Central banks are acting as structural buyers of gold, which, along with geopolitical and policy uncertainties, strengthens the case for gold as a safe-haven investment [7] - The anticipated rate cuts in 2026 are expected to lower the opportunity cost of holding non-yielding assets like gold, further supporting its demand [8]