The gold industry is “strengthening” the price of gold: there will still be a 10% increase in the next year!

According to a survey of the precious metals industry conducted at an annual event, gold is expected to continue to reach record highs over the next year, but not break through the $3,000 mark.

At the London Precious Metals Market Association event (LBMA) in Miami, delegates expect that by the end of October next year, the price of gold will rise to $2917.40 per ounce, which is about 10% higher than the current level. This figure is based on an average forecast from LBMA's two-day survey of traders, refiners, and miners during the conference.

Gold was one of the best performing commodities in 2024. Its appeal as a safe-haven asset, diversified investment to protect wealth, and central bank purchases made it continue to set new records. Last month, gold hit a record high of 2,685 US dollars after the Federal Reserve switched to interest rate cuts. In a period of low interest rate environment and geopolitical turmoil, zero-yield gold was often the “first choice” for investors.

Investors are also increasingly watching the US presidential election in a few weeks. In an interview, Republican candidate Trump defended plans to drastically raise tariffs, promised more direct negotiations with the Federal Reserve, and dismissed concerns about the federal deficit.

Notably, LBMA representatives greatly underestimated the potential of gold last year. In October 2023, the LBMA survey predicted that the price of gold would reach around 1990 US dollars per ounce in 2024.

LBMA chairman Paul Fisher pointed out that compared to last year's conference in Barcelona, Spain, the price of gold has risen by one-third. He added that the background of the rise in gold prices is that the US economy remains relatively healthy, inflation is rising, and the labor market is showing elasticity.

On Wednesday, the price of gold fluctuated in a narrow range, and market participants are awaiting more US economic data to determine how many interest rate cuts the Federal Reserve may implement in the short term in the future. Soni Kumari, commodity strategist at ANZ Bank, said, “The beginning of the US easing policy has changed the rules of the gold price game, and it has laid the foundation for investment demand.”

Investors are watching US retail sales, industrial production, and early weekly jobless claims data released on Thursday to find the latest clues about the Federal Reserve's monetary easing cycle. Currently, traders expect a 97.2% chance that the Fed will cut interest rates by 25 basis points in November.

San Francisco Federal Reserve Chairman Daly said that as long as the data is in line with expectations, the Federal Reserve will continue to cut interest rates this year.

Atlanta Federal Reserve Chairman Bostic said he updated his forecast in last month's meeting, believing that interest rates will only be cut by another 25 basis points this year.

Also, with regard to silver, the LBMA survey shows that silver may perform better. It will rise more than 40% over the next year to reach $45 per ounce. Meanwhile, 37% of delegates believe that gold will become the industry's top asset; platinum is in third place; only 16% expect platinum to shine next year; and only 2% of participants expect palladium to outperform the market.