Media365
Gold is likely to stabilise and resume its record-setting uptrend once Middle East tensions recede and new leadership at the US Federal Reserve adopts a policy of monetary easing, according to global financial institutions.
The yellow metal would quickly rebound above US$5,000 an ounce as long as crude oil slipped back to between US$80 and US$85 a barrel, according to a report by William Blair, the US investment banking and wealth-management company.
Lombard Odier, the Swiss private banking and asset management conglomerate, expected bullion to reach US$5,400 within 12 months on the prospects of Fed loosening after Kevin Warsh is set to take over as chair of the US central bank in May. Spot gold recently traded at US$4,702 an ounce.
Gold has been on a wild ride this year, surging as much as 25 per cent before the war in Iran wiped out almost all the gains. The conflict drove crude above US$100, stoking concerns about accelerating inflation and monetary tightening by global central banks.
Gold yields no interest-rate income and typically moves in the opposite direction to benchmark borrowing costs. The precious metal surged 65 per cent in 2025 – the best performer across key asset classes – as global central banks and hedge funds increased their holdings of gold amid jitters about the fiscal sustainability of the world’s major economies.
“If geopolitical tensions ease, market expectations could quickly revert to rate cuts in 2026, creating a very supportive backdrop for gold,” said Aakash Doshi, head of gold strategy at State Street Investment Management. “Additionally, the transition to a new Fed chair, who has been viewed by some to be inclined towards easing, also introduces a policy shift bias that could support gold.”
