Gold price forecast: Why investors expect record highs within 2 years

Gold prices could climb to fresh record highs within the next 24 months, according to investors and industry executives cited by the Financial Times, as central banks increase their bullion purchases and concerns over government debt, geopolitical tensions and the US dollar’s dominance support demand for the precious metal.

The bullish forecasts come despite a recent decline in gold prices. Bullion fell 2% to $4,075 per troy ounce on Wednesday amid expectations that the US Federal Reserve could raise interest rates again, the news outlet stated.

However, fund managers cited by FT expect gold to rebound, supported by investors seeking safe-haven assets amid growing economic and financial market uncertainty.

Central banks’ reported gold purchases in September reached their highest monthly level since November 2024, with provisional data showing about 63 tonnes of buying so far, according to the World Gold Council. The figures were reportedly compiled using central bank and International Monetary Fund data.

Gold surged to a record high of more than $5,500 per troy ounce in January before retreating. Despite the subsequent fall, the metal remains at historically elevated levels.

Gold price forecast: Why investors expect fresh records

Charlotte Yonge, a fund manager at Troy Asset Management, told the FT’s Precious Metals Symposium on Wednesday that gold could reach a new record high within 12 to 18 months.

Yonge sees bullion as a hedge against deteriorating government finances, particularly rising US debt. She also pointed to the possibility that central banks could expand money supply during a future recession, potentially weakening confidence in currencies.

Unlike fiat currencies, gold cannot be created through monetary expansion, making it attractive to investors seeking to preserve wealth, she said.

Paul Carne, delegated chief investment officer for Europe, the Middle East and Africa at Aon Investments, also expects gold to reach fresh highs within two years.

Carne cited US policymaking and the use of the dollar as a geopolitical instrument as factors that could encourage countries to seek alternatives to the American currency. Gold could benefit if governments and financial institutions become less willing to rely on the dollar, he said.

Gold gains appeal amid financial crisis concerns

Concerns about a potential financial crisis are also strengthening the investment case for gold.

Peter Marrone, chair and chief executive of mining company Allied Gold, told the news outlet that investors should consider whether global markets were approaching a significant financial disruption.

Marrone said family offices were increasingly turning to bullion as economic uncertainty intensified, with some reducing their exposure to government bonds in favour of gold.

Ian Cockerill, chief executive of gold producer Endeavour Mining, similarly identified concerns over fiat currencies, macroeconomic instability and central banks’ efforts to protect the value of their reserves as factors supporting bullion prices.

Cockerill suggested that $4,000 per troy ounce could be close to a price floor before gold’s next potential advance, although he cautioned that this level was not certain to hold.

Central bank gold buying supports outlook

Central banks remain an important source of demand for gold, with emerging-market institutions seeking to diversify their reserves away from the US dollar.

China has also continued adding to its gold holdings in recent months. The People’s Bank of China’s bullion reserves stand at approximately 2,410 tonnes, equivalent to around 9% of its total reserves, according to World Gold Council data cited by the FT.