ANZ Bank expects gold prices to rise to $4,400 per ounce by the end of this year, driven by rising economic and financial risks, in addition to expectations of a Federal Reserve interest rate cut.
The Australian bank indicated, according to Reuters, that the yellow metal could peak near $4,600 by June 2026, before gradually declining during the second half of next year.
However, the bank's analysts warned of potential risks that could drive prices sharply lower, including monetary policy tightening by the Federal Reserve or a sudden US economic growth, with the likelihood of a correction increasing.
The bank added: "With gold's gains exceeding 60% since the beginning of this year above $4,200 per ounce, the rally remains strong and shows no signs of losing momentum
