HSBC has revised its average gold price forecasts upward for the next two years, attributing the change to increased geopolitical tensions and robust investor demand for the metal, according to a Reuters report.

The bank now projects gold to average $3,215 per ounce in 2025 and $3,125 per ounce in 2026, up from its previous estimates of $3,015 and $2,915, respectively.

The revised forecast underscores HSBC’s bullish stance on gold as a safe-haven asset in the face of ongoing global uncertainty.

Spot gold hit an all-time high of $3,500.05 per ounce in late April and was trading at $3,348.50 on Wednesday morning.

“We expect a broad and volatile trading range between $3,600 and $3,100 per ounce for the remainder of the year, with year-end targets of $3,175 for 2025 and $3,025 for 2026,” the bank noted in a report released Tuesday.

HSBC analysts observed that central bank demand for gold may ease if prices continue climbing above $3,300, but could pick up again if prices retreat closer to $3,000.

On the physical demand side, HSBC warned that sustained gains beyond $3,500 could dampen appetite for gold jewellery, coins, and small bars—especially in key markets like India and China.

Meanwhile, Goldman Sachs maintains a similarly bullish outlook, projecting gold to reach $3,700 by year-end and climb to $4,000 by mid-2026. In extreme risk scenarios, the bank sees potential for gold to surge as high as $4,500.

Goldman also expects gold to continue outperforming silver, which remains under pressure from softening industrial demand—particularly due to a slowdown in China’s solar sector.