On Tuesday, delegates attending the London Bullion Market Association (LBMA) annual meeting in Kyoto, Japan, predicted that gold prices are expected to reach $4,980 per ounce over the next 12 months, more than 25% higher than current levels .
This is the result of the London Bullion Market Association's annual survey, which was presented to delegates at the conference.
Over the past few months, political tensions, uncertainty surrounding U.S. tariffs, and concerns about missing out on price increases have driven gold prices higher, with spot gold reaching a record high of $4,381 per ounce on October 20.
However, since last week, the gold market has experienced a sharp sell-off, with gold prices experiencing a significant pullback. This week, gold prices continued last week's decline, falling below the $4,000 mark on Monday and further below the $3,900 mark on Tuesday.
Despite this, gold prices have risen more than 50% so far this year, on track for their biggest annual gain since 1979. Spot gold hovered above $3,970 in Asian trading on Wednesday.
The survey also showed that 40% of LBMA representatives expect gold to become a precious metal by 2026. The best performing asset in the sector .
Despite the recent sharp sell-off in gold prices, Wall Street analysts generally view this as a "healthy correction" and a good opportunity to buy. (Bank of America) Société Générale HSBC and other well-known banks Analysts across the board have set a gold price target of $5,000 per ounce for next year.
Just as the aforementioned survey was released, two more central banks around the world are considering joining the gold buying spree: the Bank of Korea is considering restarting gold purchases after a 12-year hiatus; and the governor of the Central Bank of Madagascar recently stated that Madagascar's gold reserves could be increased from the current 1 ton to 4 tons.
Over the past three years, central bank demand for gold has increased by more than 1,000 tons. However, analysts point out that most of these purchases have been concentrated in the hands of a few central banks. As more central banks join the gold-buying spree, analysts expect central bank demand to support gold prices in the long term.
Other precious metals
Furthermore, global delegates attending the LBMA meeting predicted that silver prices could jump from around $46 per ounce on Tuesday to $59 within a year.
Silver prices hit a record high of $54.50 on October 17, up 62% year-to-date, the biggest gain since 2010, driven by strong investment demand, tight supply in the London spot market, and increased purchases from India.
LBMA representatives also projected that platinum prices would rise from the current $1,544 per ounce to $1,816, and palladium prices would rise from around $1,364 per ounce to $1,709.
Platinum and palladium have risen by 76% and 54% respectively this year due to tight supply and concerns about U.S. tariffs.
(Article source: CLS)
