Gold Prices Targeted at $5,000 Amid Dollar Weakness

BNP Paribas Wealth Management sees gold prices reaching $5,000 an ounce within the next 12 months. This forecast implies over 20% upside from current levels, according to Shafali, Head of Investment Services Asia at BNP Paribas Wealth Management.

The prediction is based on two pillars: official-sector buying and retail flows. The World Gold Council survey data shows that 89% of central banks plan to raise gold allocations, with retail ETF inflows expected to follow as tensions ease.

Shafali acknowledged that bullion has underperformed this year due to a stronger dollar and concerns about rate hikes. However, with the dollar giving back some of its recent gains and inflation concerns rising, BNP Paribas expects a 3.5% decline in the dollar over the next 12 months.