Gold Price Expectations Rise.. and QNB Sees Stability Around $4000 per Ounce

A report issued by Qatar National Bank (QNB) predicted that gold prices will experience a new wave of increase in the medium to long term, supported by strong fundamental factors.

The bank's weekly report indicated a consensus among specialized research centers that gold prices will remain stable at high levels of around $4,000 per ounce, with an expected increase ranging from 10 to 15 percent over the next twelve months.

In analyzing the reasons for these expectations, the bank considered that current prices appear "fair," noting that "a large part of the recent movements in gold prices is a compensation for a long period of undervaluation since 2010."

The report also highlighted two key factors supporting the expected upward trend, the first being the increasing holdings of central banks and other investors in gold, which "indicates a wider scope for its price increase."

The second factor is the ongoing geopolitical polarization, which continues to "enhance the appeal of gold as a neutral asset in terms of jurisdiction and is not affected by the use of financial instruments as 'weapons'," according to the report.