Yardeni sticks to long-term gold bull case despite sharp pullback

Investing.com -- Yardeni Research reaffirmed its bullish long-term outlook for gold, arguing that the metal remains on track to reach $6,000 by year-end and $10,000 by 2029, despite a steep correction in recent days. 

The firm said its forecast is anchored in its “Roaring 2020s” scenario, in which equity gains drive investors to rebalance portfolios toward alternative assets such as gold.

Yardeni Research believes the underlying fundamentals supporting the rally remain intact. 

It expects central banks to keep adding to reserves and sees continued strong demand from Chinese investors, who have been “hard hit by the bursting of China’s property bubble and whipsawed by the Chinese stock market.” 

The firm also expects U.S. government debt, higher global inflation and persistent geopolitical tensions to underpin structural demand.

While acknowledging the possibility of lowering its 2026 target to $5,000 if gold “continues to defy our expectations,” Yardeni Research emphasized that the recent weakness does not alter its bigger picture. 

The pullback may reflect “profit-taking” after a rapid ascent, but sentiment indicators suggest a potential bottom.

The firm also pointed to historical patterns, noting that gold’s rise since early last year resembles the surge seen during the Carter administration, with prices peaking when Ronald Reagan took office.