SSGA forecasts gold prices to rise to $5,000 in coming years

State Street Global Advisors (SSGA) predicts that gold prices could climb to $5,000 per ounce within the next few years. Such an increase will be largely driven by sustained central bank gold purchases and renewed demand for bullion-backed exchange-traded funds (ETFs).

The safe-haven asset’s appeal is further bolstered by economic and geopolitical instability, accelerating de-dollarization, and escalating tensions between the United States and China. According to the company's experts, Trump's tariff policy is only adding fuel to the fire. Seeking to preserve their savings, traders are turning to gold investments.

Another key driver is the growing risk of stagflation in the US. SSGA warns market participants of upcoming economic challenges, especially the corrosive trifecta of a slowing job market, stagnant economic growth, and rising inflation.

While current indicators remain relatively stable, long-term projections are concerning, SSGA concludes.