The rally in gold and silver prices is not yet mature enough to reverse anytime soon, as gold remains an insurance asset against a number of uncertainties, and the recent correction presents opportunity for fresh investment, ANZ Research said in a report on Friday.

ANZ revised up its price forecasts, and gold is now expected to hit $5,800 per ounce in the June quarter, compared with the earlier forecast of $5,400 per ounce. Silver prices will remain anchored to rising gold prices, but silver is expected to underperform gold.

Gold fell recently from its historic high of $5,600 per ounce after US President Donald Trump's nomination of Kevin Warsh as chair of the US Federal Reserve.

Recent comments from Warsh suggest that he would like to see policy rates decline, and the analysts expect two 25-basis-point rate cuts in March and June, the report said. This will support inflows into gold.

The global financial system is undergoing a structural shift. The US Treasury is facing trust issues and there is a gradual shift towards diversifying away from the US dollar. Gold serves as a transitional asset, providing stability and diversification.

The World Gold Council report highlighted that overall gold demand reached a record 5,000 tonnes in 2025. Investment was the primary driver, while jewelry consumption declined and central bank purchases eased. This trend is likely to continue, with investment demand is expected to be fueled by growing holdings in gold-backed exchange traded funds, ANZ Research said.