Gold has recently recovered part of the losses it recorded in late October, and we expect rising demand for the precious metal to support higher prices in the future. From our perspective, further interest rate cuts by the Federal Reserve, declining real yields, increasing financial risks, and shifts in the U.S. domestic political environment are likely to sustain the current strong buying trends from both central banks and investors. We forecast that the gold price could reach $4,500 per ounce by June 2026.
Therefore, while commodities generally experience cyclical volatility, we believe they can play a valuable role in investment portfolios, with returns peaking when supply-demand imbalances or macroeconomic risks increase. Investors can access commodities through diversified indices, exchange-traded funds (ETFs), or structured investments, provided they are aware of unique risks such as price volatility and costs associated with futures contracts or physical ownership.
