Gold's 2025 Surge: Why Fund Managers Expect Continued Rally in 2026

• Gold surged 65% in 2025, its strongest performance in nearly half a century, driven by retail, institutional, and Central Bank buying.
• Despite the historic jump, major money managers remain positive on gold for 2026, citing persistent factors like falling interest rates, geopolitical tensions, and fiscal uncertainties.
• Weakening trust in fiat currencies, rising government debt, and political infighting are strengthening gold's appeal as an 'anti-fiat currency play'.
• Central Banks are expected to continue significant gold purchases (around 80 tons/month in 2026), a trend accelerated after the freezing of Russia's foreign exchange reserves.
• While 2026 gains might be more balanced and slower than 2025, fund houses like DWS Group and UBS Asset Management maintain higher-than-normal gold allocations.

Why It Matters: Fund managers anticipate gold's rally to continue in 2026, driven by central bank buying and weakening fiat currency trust.