VanEck sees gold prices rising to $4,000 this year if ETF demand strengthens

Amid some relaxation of global trade tensions, the gold market is experiencing a relatively mild correction. The price of the main precious metal has fallen from last month's highs, but is still above the support level of $3,300 per ounce.

As said by Imaru Casanova, portfolio manager of the VanEck fund, the gold rally is far from being over, and even at current prices, the metal still has investment potential.

According to the analyst's estimates, the broad investment market has not yet given the precious metal the attention it deserves, despite its significant rise in price over the past two years. At the moment, only about 1% of global assets under management are allocated to the gold sector, according to her data. But when investors resume their active interest in gold, coupled with heavy purchases of the asset by central banks, this will push prices up another $600 an ounce, she believes.

Based on the historical correlation between ETF demand and the gold price, if ETFs return to the peak levels seen in 2020, Casanova expects a likely spike in the metal's price.

Overall, VanEck forecasts gold prices to rise to $4,000 an ounce in 2025.