BMO Capital Markets’ outlook for the third quarter suggests that gold prices will remain close to the current level through the summer.
However, analysts expect prices to rise to $3,600 per ounce in the fourth quarter. The forecast is based on the ongoing trend towards de-dollarization and expectations of high demand for gold from central banks through 2025. This year, the yellow metal has already risen in price by 30%.
Meanwhile, BMO Capital Markets is bullish on silver despite its limited upside potential in the near term.
The analysts warn that slower demand for renewable energy, in particular for solar panels, could weigh on silver prices until year-end.
At the same time, broad industrial use of the metal will continue to support silver. BMO Capital Markets sees a deficit in the market of 150–200 million ounces in the near future. The analysts believe this will also keep silver prices high until the end of this year.