Société Générale, a leading European bank, has shared its bullish gold price stance. The bank believes that gold has the power to outpace US dollars and bonds, hitting $5K in 2026. 2025 was particularly harsh for the US dollar, as USD continued to lose momentum against major assets and competitors. Moreover, the Fed rate volatility coupled with tariffs has had a deteriorating effect on the dollar, with Soc Gen now reiterating that the American currency may further be detailed by gold in 2026.

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Société Générale: 2026 Bad for USD, Bullish for Gold

Per a recent Kitco article, Soc Gen analysts continue to maintain their bullish stance on gold. Speaking about their gold prediction in depth, the analysts shared how they are maintaining a 10% portfolio exposure towards gold and are reducing its dependence on US dollar-based assets.

“In a year when fixed income has struggled and USD weakness has weighed on the common-currency return of USD assets, SGMAP has performed well with balanced allocation. Our theme of broadening in asset price performance is reflected in the performance of various equity markets. And other assets like gold,” the analysts said in their latest report. “Going forward, we expect this broadening theme to persist amid falling interest rates in the US.”

The analysts have issued a new $5K call for gold, adding how diversification of investors towards the asset might lead the charge, helping gold rise steadily on the radar.

“Retail investors have continued to diversify their assets and pile into gold, through bars, coins, and ETFs. We recommend buying the dips. As non-aligned central banks will continue to diversify away from USD assets. In addition to this, because gold offers efficient protection against many risks (including a more dovish Fed after the change in top personnel.” The analysts said.

US Dollar Declined To Continue In 2026

Despite multiple attempts to stabilize the US economy, the US dollar continues to slip past, exploring lower price ranges in the meantime. The USD is projected to reach further lows, with the DXY index exploring the 94 to 97 mark before rebounding.

“The U.S. dollar index, currently around 100, could fall to 94 in the second quarter of 2026. And rise back to 100 by the end of the year,” noted Morgan Stanley.

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