The price of gold is anticipated to reach record levels within the next two years, driven by rising central bank purchases and ongoing economic uncertainties, according to investors and market analysts. Central banks stepped up their acquisitions of gold in September, with reported purchases reaching their highest monthly total since November 2024, amounting to approximately 63 tonnes, provisional data from the World Gold Council indicate.
Despite a recent decline of about 2% to $4,075 per troy ounce following expectations of another interest rate hike by the US Federal Reserve, market participants remain optimistic about gold’s prospects. The precious metal previously soared to an all-time high exceeding $5,500 per troy ounce in January, though it has since retreated but continues to trade at elevated levels historically.
The interest in gold is largely underpinned by its role as a safe haven amid ongoing geopolitical tensions, economic instability, and financial market volatility. Charlotte Yonge, a fund manager at Troy Asset Management, projected gold prices could establish new highs within 12 to 18 months. She emphasized gold’s appeal as a hedge against deteriorating government finances, especially in light of growing US government debt and potential future monetary stimulus measures. “Gold can’t be printed in that same way,” Yonge noted, contrasting it with fiat currencies.
Similarly, Paul Carne, delegated chief investment officer for Europe, the Middle East, and Africa at Aon Investments, forecast that gold would reach record highs within two years. Carne highlighted concerns about the US dollar’s status as a global reserve currency, suggesting that policies perceived as “weaponizing” the dollar could lead to diminished confidence and increased demand for alternatives like gold.
From the mining sector, Peter Marrone, chair and CEO of Allied Gold, remarked on growing apprehension about an impending financial crisis. He observed that family offices were increasingly moving their investments from government bonds into bullion to mitigate risk amid a more uncertain macroeconomic environment.
Ian Cockerill, CEO of Endeavour Mining, pointed to broader macroeconomic factors supporting gold prices, including waning trust in fiat currencies and efforts by central banks to safeguard the value of their monetary reserves. The combined influence of these factors appears set to sustain strong demand for gold as investors seek security amidst unpredictable global conditions.