CIBC analysts see gold heading towards $3,600 per ounce now that the second half of the year has begun. They believe that the yellow metal will remain there before falling to an average of $3,000 per ounce in the year after next.
The experts also continue to expect a positive macroeconomic environment for precious metals, partly because they believe that uncertainty regarding US tariff policy will persist and that the negative effects of this policy will affect consumers’ purchasing power.
Although the ongoing trade disputes would favor increased inflation, according to the bankers, they assume that weaker economic growth and lower energy prices would ultimately force the US Federal Reserve to lower the key interest rate. It was only a question of when and how quickly, the CIBC analysts continued.
Gold Remains a Safe Haven
In addition, the experts expect gold to remain an important safe haven, as the “global trade war” is exacerbating the ongoing trend towards de-dollarization. CIBC assumes that central banks will continue to buy gold.
The Canadian bank is also positive on silver, but does not expect it to rise above USD 40 per ounce until 2026. The silver price is showing relative strength and represents a trade on the fact that it could catch up with its big brother gold. Further price breakouts are conceivable and should trigger a momentum that should ultimately lead the precious metal towards USD 40.56 and then USD 43.50 per ounce.
