BCA Research predicts gold price increase amid declining industrial metals demand

Analysts at Canada's BCA Research predict gold prices will keep climbing as industrial metals lose appeal. Weak economic activity in China and higher US import tariffs are reducing demand for copper, iron ore and even oil. Meanwhile, investors continue buying gold as a safe-haven asset.

Rukaya Ibrahim from BCA Research notes that central banks have been actively buying the yellow metal for three straight years. She believes the recent price fluctuations between $3,300 and $3,400 per ounce are temporary. Gold could retest its all-time high of $3,500 reached in April. Yet, rising US bond yields aren’t holding back the metal’s rally. In today’s market climate, investors are willing to pay extra for safety.

The analyst also notes the weakening US dollar, which could further boost gold by making it cheaper for foreign buyers. At the same time, the firm remains bearish on copper and oil, citing US trade policies and industrial sector weakness.