As of early October, gold has appreciated by over 46%, marking what is expected to be its best year since 1979. On Thursday, October 2nd, it reached its latest peak, nearing $3,900 per ounce ($3,896.85). In September alone, the price increased by 11.92%.
Nicolás López, an analyst at Singular Bank, explained that gold is among the assets with significant appreciation in recent months. This surge has been driven by central banks worldwide, particularly those from emerging markets, aiming to reduce the dollar’s weight in their reserves.
Pedro del Pozo, the investment director at Mutualidad de la Abogacía, stated that gold and precious metals, in general, are experiencing a true ‘boom’.
In his opinion, the rise in gold prices reflects concerns about trade wars, the conflict in Ukraine, or the situation in Gaza.
As a safe-haven asset, gold will likely continue its upward trend “for some time,” he believes.
Similarly, Bank of America analysts have raised the target price for gold to $4,000, considering inflationary pressures due to tariffs, global geopolitical tensions, and the structural deficit of the United States.
Deutsche Bank analysts also deem it likely that gold will remain elevated due to strong demand and the dollar’s decline. The dollar is losing its “high-yield currency status” as foreign investors increasingly invest in U.S. assets with currency hedges.
Experts at Bankinter argue that gold, traditionally inversely correlated with the dollar, could exceed $4,000, driven by the weakening of the U.S. currency, a trend they expect to continue.
Analysts at Julius Baer have evaluated whether gold has a valuation ceiling, concluding that both gold and silver have accelerated their gains following a moderate response to U.S. Federal Reserve rate cuts.
“Expectations of further interest rate cuts have become a key driver for prices, boosting demand for gold and silver,” the analysts note, adding that central banks have re-entered the market, bolstering continuous buying expectations.
In this context, the financial institution maintains a “constructive trend for both gold and silver,” as “investors do not seem to be fully satisfied with gold and silver, as capital continues to flow into physically-backed products.”
For gold, they report “inflows amounting to about 400 tons” since the beginning of the year, predicting that 2025 will be “the best since 2020.”
With the rise in gold, other metals have experienced a substantial price increase this year. Silver has climbed over 60%, nearing its best year since 2010.
