BMO strongly supports the long bull market in gold: the upward trend is only a temporary pause, and will be maintained above $5000 next year.

BMO analysts said in a report on Tuesday that the economic situation is likely to continue to decline due to the changes caused by the Middle East war, but the upward trend has only temporarily stalled and has not reversed. The institution has raised its gold price forecast for the second half and end of this year. "The Iran conflict not only did not weaken the structural factors of metals and mining, but rather increased their importance. The problem is when the market will have enough confidence in resolving the conflict to increase risk exposure again," BMO Bank wrote. The bank expects the average gold price for the third quarter to be $4,800 per ounce, 7% higher than previous forecasts; the average gold price for the fourth quarter is expected to be $4,900 per ounce, 9% higher than previous predictions; the average annual price for the year is forecasted to be $4,846 per ounce, higher than previous predictions of $4,550 per ounce. BMO also has a positive outlook for gold in 2027, expecting the price to remain above $5000, with an average of $5125 per year, 26% higher than previous forecasts. The bank also sees potential in silver, but believes that this year may be the peak for silver prices, forecasting an average of $74.50 per ounce in 2026, which will then decline to an average of $64.20 per ounce next year. "We believe that the long-term bull market logic for gold still holds - diversification, currency devaluation, de-dollarization - but we may have to wait until the conflict is resolved before sellers can turn into buyers again," BMO wrote. On Tuesday, gold and silver closed almost unchanged. New York Commodity Exchange gold futures for delivery in March fell 0.1% to $4,399.30 per ounce, marking the fifth consecutive trading day of declines; while New York Commodity Exchange silver futures for March delivery rose 0.3% to $69.274 per ounce, ending a nine-day consecutive decline period in which the near-month contract fell more than 22%.