The Australian major bank ANZ Group is optimistic that the current gold price rally will continue. Analysts just raised their year-end forecast to $3,800 USD per ounce of gold. By mid-2026, they expect the yellow metal to reach its peak at $4,000 USD per ounce.
Since the beginning of the year, the gold price has risen by just over 38%, primarily due to a weaker US dollar, continued high central bank purchases, and increased geopolitical uncertainty.
According to ANZ, the prospect of looser US monetary policy, rising international tensions, ongoing economic challenges, and concerns about the Fed’s independence are making gold even more attractive as an investment.
Central Banks to Continue Gold Purchases
According to the bank’s estimates, central bank gold purchases this year are expected to amount to 900 to 950 tons. This would mean purchases of 485 to 500 tons for the second half of the year. The People’s Bank of China also expanded its gold reserves again in August, buying gold for the tenth consecutive month.
ANZ expects that rising risks in the US labor market will lead the Fed to pursue a loose monetary policy until 2026. This will put pressure on US Treasury yields, which typically increases gold’s attractiveness for investors.
The silver price in Australia is seen at $44.7 USD per ounce by year-end, citing strong ETF inflows and the gold price rally as reasons.
