The price of gold is forecast to hit a new all-time high of US$3,600 per ounce in the second half of 2025, and stay there through next year. That’s according to CIBC Capital Markets analysts expecting an encore to early 2025’s record-breaking rally.
The spot price of bullion (GC=F) has climbed about 28 per cent year-to-date. Gold set a fresh record trading high at about US$3,500 per ounce in late April. Since then, prices have pulled back to the US$3,300-range.
CIBC analyst Anita Soni says a banquet of uncertainty around the world this year is boosting the appeal of alternative reserve assets. Last December, her team predicted gold prices would average $2,800 per ounce in 2025.
“In that seven months, U.S. President Trump has taken office, initiated a global trade war and implemented several protective tariffs impacting goods imported into the United States, and threatened and backed off from multitudes more,” Soni wrote in a recent report.
“Geopolitical tensions in the Middle East and Russia remain elevated,” she added. “All this uncertainty has led to the acceleration of de-dollarization, supporting gold prices.”
CIBC Capital Markets now expects bullion to average US$3,600 per ounce in the second half of 2025, and through 2026. In 2027, the bank forecasts US$3,300 per ounce, falling to US$3,000 in 2028.
On Monday, the Toronto-based bank boosted its price targets for 36 Canadian gold stocks, citing expectations for lower interest rates, geopolitical uncertainty, and continued stockpiling by central banks among expected tailwinds for the precious metal.
“We continue to expect a positive macroeconomic setup for gold,” Soni wrote. “We believe [U.S.] rate cuts are likely and it’s a matter of ‘when and how fast’, and not ‘if.’”
CIBCs top stock picks in the sector are Agnico Eagle Mines (AEM.TO), Kinross Gold (K.TO), Alamos Gold (AGI.TO), Franco-Nevada (FNV), and Discovery Silver (DSV.TO).
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist.
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