Wells Fargo(US:WFC) Xin Lang Cai Jing·2026-02-09 08:44Core Viewpoint - Wells Fargo Investment Institute has raised its gold price target for the end of 2026 to $6,100 to $6,300 per ounce, significantly up from the previous forecast of $4,500 to $4,700, marking an increase of $1,600 or nearly 35% [1][7][8] Group 1: Market Context - Recent volatility in technology and AI stocks has made gold more attractive compared to other market sectors, with software and services stocks experiencing a significant sell-off, resulting in a market cap loss of nearly $1 trillion [1][8] - Major tech companies, including Amazon, have seen stock price declines following announcements of substantial capital expenditures, indicating a shift in investor sentiment towards performance-based evaluations of AI [1][8] Group 2: Institutional Price Targets - Major institutions have set the following gold price targets for the end of 2026: JPMorgan at $6,300, UBS at $6,200, Deutsche Bank at $6,000, Goldman Sachs at $5,400, and Macquarie Group at $4,323, with Wells Fargo's target being $6,100 to $6,300 [3][10] Group 3: Driving Factors for Gold Prices - Central banks continue to act as structural buyers, with geopolitical uncertainties and policy changes contributing to a solid foundation for safe-haven demand for gold [3][10][12] - Interest rate factors are crucial, as the market is pricing in several rate cuts by 2026, which lowers the opportunity cost of holding non-yielding assets like gold [3][10] Group 4: Central Bank Demand - Central banks are projected to purchase 863 tons of gold in 2025, which, while lower than the previous two years, remains at historically high levels, with purchases of approximately 1,044.6 tons in 2024 and 1,050.8 tons in 2023 [5][6][12] - During the 2022-2023 period, central bank demand accounted for about one-quarter of global gold demand [6][12] Group 5: Policy Uncertainty - Wells Fargo believes that policy uncertainty and changes in interest rate structures will favor gold performance, as unexpected policy shifts are accelerating, increasing demand for hedging tools [4][12]