HSBC currency and commodity strategist Rudolf Born stated that despite recent volatility in international gold prices, strong demand from central banks and retail investors has kept gold on an upward trajectory. The bank remains optimistic about gold's prospects in the coming months.

Born noted that gold is experiencing one of its most successful years, with year-to-date gains of approximately 54%. This exceptional growth is largely attributed to rising global uncertainty and concerns over a weaker US dollar. While the recent rebound in gold prices is encouraging, further consolidation may occur in the near term before the upward trend gradually resumes.

Gold continues to serve as a crucial diversification tool in investment portfolios, helping investors navigate persistent global uncertainties. Since 2022, the proportion of gold in central bank reserves has risen significantly, with prices climbing from $2,000 to over $4,000 per ounce. Central banks' primary motivations include diversifying reserves and hedging against global risks, making their sustained gold purchases a structural support for prices.

Born believes that as institutional entities with long-term strategies, central banks are unlikely to abruptly alter their current frameworks. Therefore, steady buying is expected to establish a price floor, keeping gold at elevated levels. While central banks may slow their accumulation, large-scale selling is improbable, reducing the risk of a sharp decline in gold prices.

On the retail side, demand for gold ETFs has shown a positive trend since mid-2024. The same factors driving central banks—such as economic uncertainty—have also boosted retail interest in gold. Additionally, expectations of monetary easing by the US Federal Reserve could further support gold prices, albeit at a slower pace than before.