Significant gold price decline is unlikely — BCA Research

The cost of gold exceeded $3,400 per ounce, but continues to fluctuate below the April’s historical high of $3,500 per ounce. As noted by Roukaya Ibrahim of BCA Research, the asset maintains a significant advantage in the precious metals sector due to the declining appeal of the US dollar and large-scale purchases by central banks.

Ongoing global economic and geopolitical uncertainties continue to reinforce gold’s role as a safe-haven asset. Ibrahim also highlighted persistent inflation risks in the United States, driven by unsustainable government debt, as a key factor supporting gold. In a recent interview with Kitco News, she pointed to the weakening investment appeal of US assets as another bullish driver.

Ibrahim sees a low probability of a significant drop in gold prices this year. She believes a strong price floor is forming around $3,000 per ounce. Both investors and central banks view gold as a vital diversification tool in an uncertain economic environment.