On May 7th, driven by the continuous strong gold purchasing demand from global central banks and geopolitical risks, gold prices are expected to maintain a strong upward trend, with a potential breakthrough to a historical high of $4,000 per ounce by mid-2026. Currently, the gold-to-silver ratio has risen from 84.7 last year to 102, reflecting gold's significant premium over silver. As of the time of writing, gold spot prices are at $3,387 per ounce, with a year-to-date increase of 28%, while silver has only risen 12% to $32.4 per ounce.
Goldman Sachs noted that oversupply in Asian photovoltaic capacity has led to weak industrial silver demand, and the Trump administration's new tariff policies have exacerbated global economic recession risks, making gold, with its financial and hedging attributes, more favored by funds. Goldman Sachs predicts that gold spot prices could reach $3,700 per ounce by year-end, and in the event of a substantial global economic recession, accelerated ETF fund inflows could push gold prices to a new high of around $3,880 per ounce by year-end.
Market data shows that global major gold ETFs have attracted over $12 billion in the past two months, creating a record high since 2020. The "BIG strategy" (US Treasury + international stocks + gold portfolio) recommended by Bank of America strategist Hartnett continues to outperform the US stock market, with VanEck physical asset ETF's year-to-date excess returns partly stemming from its 25% gold allocation cap. HSBC's multi-asset strategy head Max Kettner recently downgraded US stock ratings, emphasizing increased gold holdings to address "stagflation-like" risks.
BiyaPay analysts specifically pointed out that the current market's enthusiasm for gold ETF allocation may continue to be released in the second half of this year and next year, becoming an important driving force for gold price increases. Coupled with ongoing geopolitical risks and the Trump administration's escalation of tariff policies leading to increased global trade friction, gold's strategic value as the "ultimate safe-haven asset" is further highlighted, with investors maintaining resilient long-term gold allocation demands.
As the world's first multi-asset trading wallet, BiyaPay supports users in directly configuring gold ETFs (such as GLD, IAU) and gold stocks through its App, diversifying investment portfolios to reduce market volatility's impact on costs while capturing long-term precious metal appreciation potential. The platform provides instant conversion between 30 fiat currencies and 200 digital currencies, allowing users to exchange USDT 1:1 with USD and seamlessly participate in US and Hong Kong stock market gold asset trading, with significant zero-fee advantages for spot and contract Makers.
