Gold Price Predicted to Soar to $5000/Oz by Year-End

The gold price has declined from its earlier highs this year, but RBC Capital Markets remains bullish on its outlook. According to their research report, investors are coming back into the market in a new wave of the 'debasement' trade, which refers to a flight to hard assets.

RBC analysts believe that central bank flows will continue to drive gold demand, with over 700 tons of inflows expected this year and next. They also point out that President Trump's popularity or lack thereof could be a key factor in gold prices, citing a negative correlation between his approval rating and gold prices.

The US national debt is another concern driving interest in non-debaseable assets like gold. RBC analysts believe that the current environment is well-suited for gold's reputation as a perceived haven, store of value, and non-debaseable real asset.

Looking ahead, RBC predicts that the gold price will grind higher from here, potentially reaching $5000/oz by year-end and higher in 2027. This compares to the current gold price of $4485.10.