ANZ released a research note on Tuesday. In it, they raised their zero to 3-month gold price forecast to $3,100 per ounce and their 6-month forecast to $3,200 per ounce.
Gold prices surpassed the $3,000 mark on Tuesday for the second time and set a new high. Investors sought cover from economic concerns fuelled by U.S. President Donald Trump’s tariff policies.
The bank stated, “we maintain our bullish view, amid strong tailwinds from escalating geopolitical and trade tensions, easing monetary policy, and strong central bank buying.”
Gold has gained over 14% so far this year. Traditionally, it is viewed as a safe asset against geopolitical instability, and bullion has hit a record high 14 times.
ANZ said, “As for the gold market, fear of import tariffs has tightened liquidity in the London spot market, as supply flows to the U.S. This has triggered arbitrage trades, with a widening spread between Comex futures and London spot.”
They added, “We see this supply dislocation taking some time to normalise and keeping silver prices volatile.”
Analysts at the bank said industrial demand is likely to be resilient despite tariff-related headwinds. They also stated that investment demand will be crucial for raising silver’s price.
The bank noted that silver will trade within the $34-$36 per ounce range in the short term. Spot silver gained 0.1% to reach $33.89 an ounce as of 0422 GMT.
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