Amid geopolitical tensions and a weakening dollar gold continues to strengthen its position as a defensive asset. According to Alfa-Bank forecasts, by the end of next year the cost of an ounce could reach $3,500.
Gold has been showing high volatility in recent weeks. Conflict between Israel and Iran, as well as uncertainty in trade negotiations between the US and China pushed quotes up. By the end of last week, the price per ounce was $3,433, an increase of 4% in a few days.
Experts note that investors are actively investing in gold, fearing further escalation in the Middle East. At the same time, the US dollar continues to weaken: the DXY index dropped to 98 points, which further supports demand for the precious metal.
Large financial institutions expect further price increases:
- Goldman Sachs forecasts $3,700 by the end of 2025 and $4,000 by mid-2026.
- Bank of America also believes that gold could rise to $4,000 in the next 12 months.
- Alfa-Bank estimates the growth potential to $3,500 by the end of next year.
Despite record prices, central banks continue to buy gold, although purchases in April were down 12% from March. Experts attribute this to the sharp rise in metal prices since the beginning of the year.
At the same time, investment funds (ETFs) recorded an outflow of funds for the first time in six months. This may be due to a short-term correction amid news of a possible Fed rate cut.
Gold remains one of the most reliable assets in times of instability. Growing geopolitical risks, a weakening dollar and inflation expectations support its value. According to Alfa-Bank forecasts, by the end of 2025 the price could reach $3,500 per ounce, and in the future – even higher levels.
The material was prepared with the support of the Russian Ministry of Education and Science as part of the Decade of Science and Technology
Source: @nedradvnews
