HSBC expects the current bullish momentum in gold to extend through 2026, underpinned by a mix of strong central bank buying, persistent U.S. fiscal worries, and expectations of further monetary easing.In a commodities outlook, the bank said gold remains well supported by robust investor sentiment and ongoing diversification by official institutions. continue to see rallies being sustained into 2026, driven by structural and macro factors that favour gold ownershipThe report highlighted that U.S. fiscal deficit concerns are a significant driver of gold demand, with investors increasingly viewing bullion as a hedge against debt sustainability risks and potential U.S. dollar weakness.HSBC also sees central bank gold purchases staying elevated, noting that demand from emerging-market central banks remains a key tailwind. The bank said institutional accumulation is unlikely to slow given ongoing geopolitical fragmentation and the desire to reduce reliance on the U.S. dollar.However, the bank cautioned that gold’s upward trajectory could face headwinds if the Federal Reserve delivers fewer rate cuts than markets currently expect. A slower easing cycle could strengthen the dollar and lift yields, tempering gold’s near-term upside before broader bullish forces reassert.Overall, HSBC maintains a positive medium-term outlook, projecting that dips will be well supported by strategic demand and macro uncertainty. This article was written by Eamonn Sheridan at investinglive.com.