Gold Hit All-Time High Last Week; Expected to More Than Double in the Coming Years

The price of gold could rise to $5,000-8,000 per ounce in the next few years, according to Juerg Kiener, managing director and investment officer at Swiss Asia Capital.

He emphasizes the sustained momentum of the price, driven by global financial changes and strong demand from central banks, saying, quoted by cnbctv18.com: "The upward trend will continue and accelerate. The price of gold has already risen by 30% from the recent lows, showing resilience amid economic uncertainty and geopolitical tensions."

Juerg Kiener remains optimistic about the long-term outlook for the yellow metal's price, considering it a refuge against inflation, exchange rate volatility and instability.

Last week, the price of gold rose to an all-time high, surpassing $3,100 an ounce, amid concerns over tariffs announced by US President Donald Trump on imports.

The spot price of gold hit a record $3,167.57 on Thursday, a day after Trump announced the new tariffs. On Friday, the spot price was around $3,080 an ounce, down more than 1% from the previous day, and futures (due in June) were at $3,118.9 an ounce on the Comex New York, down 0.1% as of 8:29 a.m. local time.

• Biggest quarterly gain in nearly 40 years

Gold prices rose nearly 20% in the first three months of 2025, their biggest quarterly gain in nearly 40 years, according to mitrade.com. The price had hit a low of $2,614 an ounce in January.

The first-quarter advance follows a more than 27% increase in 2024, supported by favorable monetary policies, massive gold purchases by central banks and demand for exchange-traded funds (ETFs).

Wall Street's major banks have revised up their forecasts for the future price of gold, with Goldman Sachs estimating that it could exceed $4,500 an ounce in the next 12 months under extreme market conditions.

Goldman Sachs expects the price of gold to reach $3,300 an ounce by the end of the year, up from $3,100 in its previous forecast. But the US bank predicts that in an extreme scenario, the price could reach $4,500 in the next 12 months.

According to mining.com, Bank of America's 2025 gold price forecast of $3,063 per ounce has already been surpassed, while UBS's $3,200/ounce target is within sight. Last week, Bank of America predicted that gold prices would reach $3,500 within two years. According to analysts at the American bank, the increase in demand could be driven by central banks reducing their holdings of US dollars and Treasuries, as well as retail investors and the insurance industry in China, which was recently given the green light to invest in gold for the first time.

Daniel Ghali, a commodities strategist at TD Securities, said, quoted by Reuters: "We are seeing signs of intense buying from China, and uncertainties surrounding Trump's trade policy will encourage macro funds to buy even more gold."

Analysts at Oversea-Chinese Banking Corp. (OCBC) say: "For now, the appeal of gold as a safe haven and hedge against inflation has further strengthened in light of geopolitical concerns and tariff uncertainties. We remain constructive on the outlook for gold, amid ongoing global trade frictions and uncertainties."

But there are also voices that predict that the price of the yellow metal will undergo a correction. For example, Jon Mills, an analyst at Morningstar, states, quoted by economictimes.indiatimes.com, that the price of gold will fall to $1,820 an ounce, on the grounds that the current factors supporting growth will fade over time. Thus, in his opinion, demand for gold from central banks will decrease, supply will be high, and the market will be saturated.