Metals Focus expects a higher average gold price in 2027, although its director of gold and silver says bond yields and other investments are drawing investor attention away from bullion.
The consultancy projects gold will average $5,330 an ounce in 2027, about 16% above its $4,600 estimate for 2026. It puts the average for the final quarter of 2027 at $5,600 an ounce.
Metals Focus director of gold and silver Matthew Piggott described the market as consolidating in an interview with Kitco News. He said institutional investors have returned when prices have fallen toward $4,000 an ounce, and central-bank buying has also helped support gold prices. The observed buying near $4,000 does not establish a guaranteed price floor.
Piggott said investors have alternatives across shares, crypto, energy and other commodity markets. Bonds pose a further challenge when yields rise: They pay interest, while gold does not. He cited that difference as a cost of holding bullion.
Over a longer period, Piggott pointed to government debt and fiscal uncertainty as reasons investors may hold gold. His assessment follows a gold rally in 2025 and unusually strong central-bank buying from 2022 through 2024.
For now, Piggott identified inflation, energy prices and monetary policy as pressures on the market. He said calmer energy markets could ease inflationary pressure. He also named developments in the Middle East conflict and seasonal physical demand as indicators to watch.
