LBMA Delegates Predict Gold Prices Could Soar to Nearly $5,000 per Ounce Within a Year
Gold | 2025-10-29 13:07:55
The rising geopolitical tensions across the globe and uncertainties over U.S. tariffs are among the key factors that may drive gold prices in future, they pointed out.
By Paul Ploumis
SEATTLE (Scrap Monster): At the annual London Bullion Market Association (LBMA) conference, delegates projected that gold prices could climb close to $5,000 per ounce within the next year. The forecast pegs the yellow metal at around $4,980 per ounce, marking a substantial 27% increase from current levels.
Experts at the event noted that gold is on course to post its strongest annual performance since 1979, having already surged 52% year-to-date. Prices have broken key psychological barriers, surpassing $3,000 per ounce in March and $4,000 per ounce in October 2025. According to delegates, ongoing geopolitical conflicts, coupled with economic uncertainty and U.S. tariff policies, are likely to continue fueling demand for the safe-haven asset.
The LBMA’s outlook aligns closely with a recent Reuters poll, which estimated the average gold price for 2026 at $4,275 per ounce.
Meanwhile, other precious metals have also witnessed sharp gains this year. Silver has advanced 62%, while platinum and palladium have risen by 76% and 54%, respectively. The LBMA expects these metals to reach $1,816 per ounce for platinum and $1,709 per ounce for palladium in the coming year.
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How should investors approach gold allocation?
Financial experts suggest gold should constitute 5-15% of diversified portfolios depending on risk tolerance. Research shows a 60/20/20 equity/bond/gold portfolio has outperformed traditional 60/40 allocations since 2020. Investors should consider dollar-cost averaging strategies rather than attempting to time entry points precisely, given gold's historical volatility within longer-term bull trends.
What represents the main risk to the bullish gold outlook?
Potential headwinds include: unexpected resolution of major geopolitical conflicts reducing safe-haven demand; aggressive Federal Reserve tightening driving real rates substantially higher; stronger-than-expected U.S. dollar appreciation; breakthrough diplomatic agreements reducing trade tensions; or reversal of central bank accumulation strategies. However, the structural debt burden makes long-term gold support likely regardless of near-term tactical shifts.
POLL
What do you believe will be the primary driver of gold prices through 2026?
Frequently Asked Questions
- What gold price target did LBMA delegates predict for the next 12 months?
Delegates at the LBMA annual conference forecast gold prices to reach around $4,980 per ounce, approaching the $5,000 mark within a year — a gain of nearly 27% from current levels.
- What factors are expected to drive this rise in gold prices?
Experts cited geopolitical tensions, economic uncertainties, and U.S. trade and tariff policies as the main forces boosting demand for gold as a safe-haven asset.
- How has gold performed so far in 2025?
Gold has recorded a 52% surge year-to-date, its strongest rise since 1979, breaking through the key resistance levels of $3,000 in March and $4,000 in October.
- Why is gold hitting record highs in 2025?
Gold has reached unprecedented levels due to a convergence of factors: aggressive central bank buying (over 3,200 tons accumulated during 2022-2024), record ETF inflows ($64 billion year-to-date), heightened geopolitical tensions, U.S. dollar weakness (12% depreciation in 2025), and concerns about global debt levels exceeding $315 trillion. The metal has surged 52% year-to-date, its strongest performance since 1979.
