(Kitco News) - After significantly underestimating the gold’s potential for the last two years, market players are playing catch-up, with expectations that gold will test resistance just below $5,000 an ounce by this time next year, according to sentiment at the 2025 London Bullion Market Association (LBMA) Global Precious Metals Conference.
In a survey conducted during the conference, delegates said they expect gold prices to rise to $4,980.30 an ounce. The LBMA forecast reflects a 25% gain from current prices. The bullish outlook comes as gold has dropped sharply below $4,000 after a wave of selling hit the market following record highs above $4,360 an ounce.
Last year, delegates expected gold prices to be around $2,941 an ounce; however, prices are now more than one-third higher than last year’s prediction.
Gold is seeing its best annual gains since 1979, with prices up more than 50% this year. However, it is not the best-performing asset in the precious metals space. Silver is trading at $47.14 an ounce, up 61% year-to-date, while platinum last traded at $1,591 an ounce, up more than 93% so far this year.
According to the survey, 40% of participants expect gold to be the top-performing asset in the precious metals sector through 2026. Last year, delegates expected silver to lead the market, but few anticipated platinum’s robust performance since the summer.
The LBMA survey also showed that 30% of delegates expect platinum prices to continue their upward momentum, making it the best-performing asset this year. Delegates forecast platinum prices will rise to $1,815.50 an ounce by next year, up 14% from current levels.
As for silver, 21% of delegates expect it to be the top-performing asset next year. Silver prices are projected to climb to $59.10 an ounce by this time next year — a 25% gain from current prices.
Although gold continues to significantly exceed expectations, many are not surprised by its performance, as investment demand has surged this year.
In a panel discussion at the start of the conference, Wayne Gordon, Managing Director and Chief Investment Officer at UBS, said that gold holdings in client portfolios have doubled this year, with the number of clients investing in gold tripling.
“I think we've had to upgrade, if I'm honest with myself, probably six times this year — and we came into the year thinking we were pretty aggressive,” Gordon said.
