This week, gold prices soared to their highest ever point as spot gold hit a record of $4,379.93 per ounce, with investors seeking a haven amid increasing geopolitical tensions and economic uncertainties.
Expectations of the Federal Reserve interest cut in the U.S, and a declining dollar have also contributed to the rally.
The bullion run, which has seen gold soar more than 60% year-to-date, does not show an immediate threat of stopping.
The ANZ analysts have predicted that the trend will be sustained, with the price of gold expected to reach $4,400 per ounce by the end of 2025 and nearly $4,600 by June 2026.
Nonetheless, the bank also put a long-term warning note. ANZ predicts that the gold prices may decrease further in the second half of 2026.
The main reasons for this anticipated decline are the expected end of the Federal Reserve's process of lowering interest rates and the increasing transparency of the United States' growth and trade policies.
This perspective shows the fragile position that gold is taking.
Although it is an ideal investment in a low-rate environment, the record-breaking performance of the Central Bank, as a non-yielding asset, is pegged to ongoing global risks, such as credit fears within the U.S. economy and renewed trade tensions between Washington and Beijing.
Other organizations, such as Union Bank of Switzerland (UBS), believe that there is more upside to come, implying that gold may rise to $4,700 if real interest rates go lower.
The breakneck rally in the market is still going; however, according to experts, the situation might change dramatically by the middle of 2026.