Gold Rally Deepens Mining Risks as HSBC Sees $5,000 in 2026

Gold’s role as a haven asset, central-bank reserve and investment vehicle has long supported demand, but the industry carries a heavy environmental and human cost. Expanding mines can destroy habitats, strain water systems and expose workers and nearby communities to hazardous substances. The use of mercury and cyanide in extraction is drawing particular scrutiny because contamination can persist beyond a mine’s operating life and threaten ecosystems, public health and local rights.

The issue has gained urgency as bullion prices climb and HSBC forecasts gold will break $5,000 an ounce in 2026. Research cited in the latest report estimates that producing a single ounce of gold generates about 79 tonnes of waste, while mining operations can release highly toxic mercury and cyanide. The figures are intensifying scrutiny of whether rising prices will encourage more extraction and deepen long-term damage to global ecosystems and mining communities.