Sing with UBS and JP Morgan! ANZ Bank calls out that the gold price pullback is the perfect opportunity to enter the market: Second quarter target price raised to $5800.

Despite gold's recent retreat from its historical high of $5600 per ounce, analysts at ANZ Bank say that this pullback may attract new investments due to sustained structural support and almost no signs of a trend reversal. It is expected that the price will reach $5800 per ounce by the second quarter of 2026. As of the time of writing, the spot gold trading price is up nearly 1% at $4970.45 per ounce. ANZ Bank analysts Sony Kumari and Daniel Hains stated in a report that loose US monetary policy, escalating geopolitical tensions, ongoing policy uncertainty, and a weakening US dollar indicate that the current gold price movement is fundamentally different from speculative bubble peaks in 1980 or 2013. The current rise is more driven by deep-seated structural demand, particularly as global efforts to diversify asset allocations and reduce reliance on a single reserve currency push central banks and institutional investors to hold gold as the "ultimate safe-haven asset" in the current macro environment. Furthermore, the independence of the Federal Reserve and uncertainty in monetary policy provide long-term risk premium support for gold prices. Although recent nominations for the Federal Reserve Chair position have temporarily eased market concerns about political interference in monetary policy, the potential pressure on US sovereign credit continues to unsettle global investors. In this backdrop, the holding costs of physical gold, while influenced by interest rate environments, are being reassessed as a credit hedging tool. It is known that Trump's nomination of Kevin Warsh for the Federal Reserve Chair sparked the most intense sell-off in the gold market in decades. The bank analysts stated, "If Warsh is confirmed by the Senate, this could signal a shift to a 'moderately hawkish' stance for the Federal Reserve, as he advocates for greater constraints on the Federal Reserve's balance sheet. His nomination has eased some worries in the market about the future independence of the Federal Reserve, which previously supported gold prices." Meanwhile, ANZ Bank also mentioned that the silver market is expected to remain highly correlated with gold prices due to sustained industrial supply shortages, boosting the overall performance of the precious metals sector. ANZ Bank analysts stated, "Silver prices will continue to anchor to the rise in gold prices. We expect silver prices to underperform gold, meaning the gold-silver ratio will return to an average of 70:1." Recent market volatility has led exchanges to increase margin requirements, posing challenges to market liquidity and exacerbating price fluctuations. Despite questions arising from recent fluctuations about whether gold prices have peaked, "We believe that this uptrend has not matured enough to reverse in the short term." Analysts point out that the market focus is increasingly shifting towards the impact of tariffs, which have not yet fully manifested in economic or inflation data. Concerns about the Federal Reserve's future credibility persist, creating an environment likely to boost demand for physical assets such as gold. Therefore, ANZ Bank reiterates gold's core position as a "insurance asset" against multiple uncertainties and notes that this pullback from historical highs presents an opportunity for new funds to enter the market. The bank analysts simultaneously significantly raised their gold price target for the second quarter of 2026 from the previous prediction of $5400 per ounce to $5800 per ounce. Currently, mainstream Wall Street investment banks have reached a consensus on the bullish sentiment for precious metals. While Goldman Sachs has locked in a year-end target price of $5400 for 2026, UBS and JPMorgan have made bolder forecasts, giving future targets of $6200 and $6300 respectively.