Steve Hanke, professor of applied economics at Johns Hopkins University, predicts the Gold (XAUT) rally could peak after another 32%-54% climb, with the asset hovering around $4,548 on May 25.
Hanke reiterated his bullish stance, predicting the gold price could surge to a peak of $6,000 to $7,000 per ounce.
“Buy gold, wear diamonds. I stand with my prediction that gold’s secular bull run will peak out at $6,000-$7,000/oz,” Hanke stated.
The prediction was bolstered by rising central bank demand for the precious metal. Furthermore, around 95% of global central banks plan to increase their gold reserves over the next 12 months, according to research by YouGov and theWorld Gold Council.
Hanke recently disagreed with Morgan Stanley’s forecast, which was cut for 2026 from $5,700/oz to $5,200/oz. Although the asset saw a parabolic rally in 2025, Hanke maintains it remains undervalued and under-owned as the market enters a commodity supercycle.
Gold price outlook
Gold has remained in horizontal consolidation since its March 2026 capitulation. After hitting an all-time high above $5,504 earlier this year, the asset has formed lower lows and highs – signs of a falling market – trading near $4,549 at press time.
Amid the bearish performance year-to-date, Finbold AI Agent – an advanced financial assistance tool – has predicted its further sell-off in the coming two months.
The Finbold AI Agent predicts the asset could drop 1.04% in two months to $4,501 by July 24, 2026. Thus, Hanke’s prediction may not materialize before August, given technical and AI forecasts.
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