Record expectations for gold prices by year-end
As optimistic expectations for gold strengthen in global markets, analysts from major financial institutions are pointing to the potential for gold prices to reach the 6,000 dollar level by the end of the year. In the silver market, volatility and demand trends are coming to the fore.
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David Wilson, a leading commodities strategy director at a French bank, stated in an interview on Bloomberg TV that geopolitical and economic uncertainties could continue to drive gold prices higher. Wilson shared his forecast that the value of an ounce of gold could rise to as much as 6,000 dollars by the end of the year. He also pointed out that the price gap between gold and silver is showing a renewed upward trend.
According to Wilson's assessments, although the gold-silver price ratio is still below its two-year average from the 1980s, it continues to recover. In his evaluation, Wilson remarked, "Gold makes sense to me in a way, while silver does not provide the same kind of risk protection."
Emphasizing the impact of central bank purchases on gold's resilient performance, Wilson noted that countries like Poland, in particular, have continued to increase their gold reserves throughout the year. He added that ETF investments, which reflect demand for bullion, have also begun to rise again following last week's correction.
Many major banks and asset management firms also agree that gold will continue to gain value in the long term. Some of these firms point out that the People's Bank of China has purchased gold for the 15th consecutive month as of January, and that official demand remains robust.
Silver, meanwhile, is exhibiting high volatility in the markets due to intense physical buying observed recently, particularly in Asia. Wilson states that with the supply of the metal shifting toward Europe and Asia, there has been a noticeable loosening in the physical market. The upcoming Chinese Lunar New Year holiday is expected to further dampen silver demand across the country.
Experts argue that gold continues to maintain its role as a safe haven and will continue to be supported by the stable purchasing policies of central banks. While fluctuations in silver are expected to persist in the short term, experts note that in the long term, silver has a lower potential for risk protection compared to gold.