Gold remains in demand as a safe haven – Commerzbank

In response to Israel's attacks on Iran, the price of Gold also jumped, albeit without reaching a new record high, Commerzbank's commodity analysts Barbara Lambrecht and Carsten Fritsch notes.

Gold to trade at $3,400 per troy ounce by the end of this year

"In a report, the ECB emphasised the great importance of central banks for the Gold market. After all, they have accounted for around 20% of global Gold purchases in the last three years. Together with the higher price, this has resulted in Gold reaching a higher share of foreign currency reserves than the euro at the end of 2024, replacing it as the second-largest reserve asset."

"Next Tuesday, the Gold mining association WGC will publish the results of its annual survey of central banks regarding their planned or expected Gold purchases. Last year, a record 80% of the central banks surveyed said that they expected further central bank purchases over the next 12 months."

"We have raised our forecast for the Gold price due to the ongoing geopolitical uncertainty and expectations of a more pronounced weakness of the US dollar: we now expect a Gold price of $3,400 per troy ounce by the end of this year and $3,600 by the end of next year (previously $3,000 in each case)."