US Debt Could Push Gold to $6,000 an Ounce, Analyst Predicts

New York: Mounting concerns over the United States’ growing fiscal deficit and rising government debt could drive gold prices to $6,000 per ounce over the longer term, according to a leading commodities analyst. The bullish forecast reflects expectations that investors will increasingly turn to gold as a hedge against currency debasement, inflation, and fiscal uncertainty.

The outlook comes from Max Layton, Global Head of Commodities Research at Citi Research, who said that even if gold experiences a short-term correction of 15% to 20%, the precious metal could eventually double in value and surpass the $6,000-per-ounce mark. Layton cited rising U.S. government borrowing, sustained central bank purchases, geopolitical tensions, and strong demand from Asia as key long-term drivers.

Analysts believe the rapid expansion of U.S. federal debt has raised concerns about long-term fiscal sustainability, prompting investors to seek assets that can preserve purchasing power. Gold has historically benefited during periods of economic uncertainty, high inflation, and weakening confidence in fiat currencies. Continued buying by central banks, particularly in emerging markets, has also helped underpin demand for the metal.

Despite the optimistic long-term outlook, gold prices have faced short-term pressure from elevated U.S. bond yields and expectations that the Federal Reserve could maintain higher interest rates for longer. Higher yields generally reduce the appeal of non-interest-bearing assets such as gold. Nevertheless, many analysts expect renewed safe-haven demand to support prices once monetary conditions begin to ease.

Other financial institutions remain constructive on gold, though with more conservative price targets. JPMorgan, for example, expects gold prices to recover later in 2026 and continue rising into 2027, while emphasizing that long-term demand from central banks and investors remains robust.

Market observers caution that the $6,000 forecast represents an analyst’s long-term scenario rather than a consensus market expectation. Future gold prices will depend on multiple factors, including U.S. fiscal policy, inflation trends, Federal Reserve decisions, geopolitical developments, and global investment flows.