Commodity analysts at multinational financial giant BMO are among those who believe the climate of uncertainty responsible for so much of gold’s recent success will remain solidly intact through the foreseeable future…and help drive both gold and silver even higher through the near term.
“The world has changed. A call on gold and precious metals is a call on the future state of the world and the nature of the transition that gets us there,” the analysts said in a recent note. “This calls us to consider bull case scenario for prices over the years in which a new world order is established, with potentially two more dominant spheres of influence, where nations in between are pushed to choose sides.”
Questions keep mounting about the continued stability of prevailing geopolitical and economic structures in an era of deglobalization and a greater-than-ever reliance on debt-based monetary systems. Accordingly, more strategists are coming to view the persistent embrace of precious metals during this already-historic bull run as reflective of a structural…even permanent…change in the ideal composition of model portfolios.
Strategists: Look for $8,650 Gold and $220 Silver by the End of Next Year
In their recent bit of analysis, BMO strategists posited that we currently may live in “a world where investors of all forms continue to add gold at a rate similar to, or even above, the rate seen over the first year of Trump’s second term.”
“If we assume average quarterly central bank purchases of ~8Moz (million ounces), quarterly ETF flows of ~4–5Moz, and ongoing erosion in real yields and the US dollar,” they added, “this brings us to a bull case scenario for gold prices of ~$6,350/oz by Q4 2026 and ~$8,650/oz by Q4 2027.”
The team at BMO additionally suggested that the profound uncertainty which has helped to propel gold ever higher is likely to provide a significant tailwind to other precious metals, such as silver, which have come to rely more on their industrial demand for upward momentum.
As the analysts put it:
“This would capture a scenario where this new global risk environment further ignites safe haven status in the non-gold precious metals too, amplified by retail participation, even though these metals have traditionally been more governed by their industrial metal characteristics.”
In this context, silver would be poised to exhibit much greater upside through the near to intermediate term, says BMO, which believes the white metal could reach $160 by the end of this year and $220 by the conclusion of 2027.
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