$Gold - main 2604(GCmain)$ $XAU/USD(XAUUSD.FOREX)$ As global political and economic volatility intensifies, the international gold market is experiencing a historic bullish wave. Bank of America Global Research recently released a report with a stunning prediction for future gold prices: its analysts explicitly stated that gold is on track to break the unprecedented milestone of $6,000 per ounce within the next 12 months.
The report points out that policy uncertainty stemming from leadership changes at the Federal Reserve, combined with global economic risks triggered by U.S. tariff policies, is collectively driving a massive inflow of safe-haven capital into the gold market. Despite the highly optimistic long-term outlook, BofA also cautiously notes that the path to higher gold prices will not be smooth. In the short term, the market may need time to adapt to elevated price levels, leading to potential periodic resistance for gold. Data shows that the pace of investors’ gold purchases has recently slowed, which could result in a phase of weakness in gold prices before spring. However, with renewed uncertainty surrounding tariff issues, this consolidation period is likely to be relatively short-lived.
In contrast to its strong bullish stance on gold, BofA analysts hold a more complex and cautious view on silver. They worry that silver prices may experience further corrections in the near term but also retain an optimistic outlook, leaving open the possibility of silver revisiting $100 per ounce in the future.
In terms of market performance, amid the launch of a new round of U.S.-Iran nuclear negotiations, investors adopted a wait-and-see attitude. Gold futures edged lower on Thursday, while silver snapped its seven-day winning streak. As of press time on Friday, spot gold inched up to around $5,194 per ounce, and spot silver rose approximately 1.8% to hover near $89.9 per ounce. Razan Hilal, an analyst at Forex.com, noted that gold and silver attempted to break through resistance levels of $5,200 and $90 this week, respectively, but failed to hold above them. If a geopolitical agreement is reached, the risk of a short-term pullback in gold and silver prices will increase.
Industry Gathering to Focus on Gold Boom
The upcoming PDAC Annual Convention in Toronto is set to be the perfect platform to discuss this gold frenzy. Tens of thousands of geologists and mining professionals from around the world will gather to explore the industry’s future. John Ing, Chief Executive Officer of Toronto-based investment advisory firm Maison Placements Canada Inc., is a steadfast gold bull. Having been bullish on gold for over 50 years, he remains convinced that "the best is yet to come" even with gold prices currently at $5,000.
He argues that from a supply-demand perspective, the current market is far from forming a true bubble. In his view, this rally cannot be deemed a historic bull market if it ends here. Drawing parallels between the current trend and the two major bull markets of the 1970s and the early 2000s, he emphasizes that gold’s value as a hedge against uncertainty and inflation is being recognized by a growing number of investors.
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