A steep correction could be in store for gold price according to Morningstar’s Jon Mills. There are long-term trends that could push bullion back to $1,820. Current high price and margins are encouraging greater production and exploration. Global central banks purchased a net 1,045 tons of gold through 2024, the third straight year of purchases over 1,000 tons. Inflows into Gold ETFs reached $9.4 billion in February, the highest inflow in nearly three years (World Gold Council data). But there are signs that the world’s appetite for gold is starting to wane. In a survey by WGC last year, 71% of central banks said they expected their own gold holdings to remain the same or decrease in the coming 12 months. Also investor appetite will likely dip, given that economic concerns are typically only short-term factors influencing gold prices: Eg Gold price briefly spiked in 2020 in response to pandemic fueled concerns. But price fell quickly thereafter and didn’t reach the prior peak until late 2023.
Source: Yahoo Finance