According to David Wilson, Head of Commodity Strategy at BNP Paribas, gold prices could climb to $6,000 per ounce by the end of this year, supported by persistent macroeconomic and geopolitical risks. Wilson also noted that the gold-to-silver ratio is expected to rise. Although the ratio remains below its two-year average from the 1980s, it has already rebounded. Wilson stated, "I believe there is still room for further divergence between the two. For me, gold's advantage lies in its ability to offer risk protection that silver cannot provide."

The outlook for gold is further bolstered by continued purchases from central banks worldwide. For instance, Poland, the largest gold buyer last year, announced last month that it would acquire an additional 150 tonnes of gold. Wilson also highlighted that inflows into gold ETFs have remained stable, recovering quickly after a brief dip during last week's market adjustment.

Many financial institutions and asset management firms, including Deutsche Bank and Goldman Sachs, maintain a bullish stance on gold, anticipating a recovery driven by long-term demand factors. To underscore the strength of official demand, the People's Bank of China extended its gold purchasing program into a 15th consecutive month in January.

Meanwhile, silver prices have experienced significant volatility in recent months, fueled by strong physical buying in Asia. However, signs of weakness are now emerging in the physical silver market as metal supplies flow into Europe and Asia. Wilson suggested that the upcoming Lunar New Year holiday may further dampen silver demand in China.