BMO supports the long bull market for gold: The rally is only a pause, and it will remain above $5,000 next year

function ft_articletoptg_scrollto(){ let ft_tg_el = document.getElementById('app-qihuo-kaihu-qr'); if(ft_tg_el){ let ft_tg_el_offtop = ft_tg_el.offsetTop - 100; window.scrollTo({ top: ft_tg_el_offtop, behavior: 'smooth' }); } }

Source: Zhitong Finance

BMO analysts stated in a report on Tuesday that due to changes in the economic situation caused by the Middle East war, prices of gold and silver may continue to fall, but the upward momentum has only temporarily stalled, and has not reversed. The institution raised its gold price forecast for the rest of this year and the end of the year.

“The Iran conflict has not weakened the structural factors underpinning metals and mining, but rather has enhanced their significance. The question is when the market will have enough confidence in the resolution of the conflict to increase risk exposure again,” BMO wrote.

The bank raised its average gold price forecast for the third quarter to $4,800 per ounce, 7% higher than the previous estimate; its fourth quarter average gold price forecast to $4,900 per ounce, 9% higher than before; and its annual average gold price forecast to $4,846 per ounce, compared to the previous $4,550 forecast. BMO is also optimistic about gold’s performance in 2027, expecting gold prices to remain above $5,000, with an annual average of $5,125, 26% higher than the earlier forecast.

The bank is also optimistic about silver, but believes this year may be the peak for silver prices, forecasting an average price of $74.50 per ounce in 2026, declining to an average of $64.20 per ounce next year.

“We believe the long-term bull case for gold remains intact—diversification, currency depreciation, de-dollarization—but it may not be until after the conflict is resolved that sellers turn back into buyers,” BMO wrote.

On Tuesday, gold and silver closed almost unchanged. New York Mercantile Exchange gold futures for March delivery fell 0.1% to $4,399.30 per ounce, marking the fifth consecutive session of decline; NYMEX silver futures for March delivery rose 0.3% to $69.274 per ounce, ending a previous nine-session losing streak, during which the front-month contract fell by more than 22% cumulatively.

Editor: Zhu Henan