"Gold price rise makes sense!" SocGen Bank calls for a target price of $6000

David Wilson, Director of Commodities Strategy at the Paris-based bank, stated that by the end of this year, the price of gold may rise to $6,000 per ounce. With the continued presence of macroeconomic and geopolitical risks, the gold-silver ratio is also expected to increase. Wilson mentioned that although the gold-silver ratio is still below the two-year average level of the 80s, it has already rebounded. He said, "I believe there is still further room for divergence between the two. To me, the advantage of gold lies in its ability to provide the kind of risk protection that silver cannot provide." The outlook for gold is also supported by continued gold purchases by major central banks, including Poland's announcement last month of purchasing an additional 150 tons of gold, making Poland the largest gold buyer last year. Wilson also added that inflows into gold ETFs remain stable, rebounding after a brief decline during last week's adjustment period. Many banks and asset management companies, including Deutsche Bank and Goldman Sachs, are optimistic about gold prices and believe that they will recover due to these long-term demand driving factors. To highlight the strong momentum of official demand, the Chinese central bank extended its gold buying program to the 15th month in January. Meanwhile, driven by strong physical silver buying in the Asian region, silver prices have experienced drastic fluctuations in the past few months. However, with metal supplies flowing into Europe and Asia, there are currently signs of weakness in the physical silver market. Wilson believes that the upcoming Lunar New Year holiday may further suppress China's demand for silver.