Recently, the financial circle has been buzzing again about the ceiling of gold prices. A leading investment bank has recently revised its expectations, setting the year-end gold price target at $5,400 per ounce, up from the previous estimate of $4,900. The logic behind this is actually not complicated—central banks around the world have not stopped their buying spree. Analysts mentioned in their reports that they expect central banks to purchase 60 tons of gold each month this year. Not only that, but as the Federal Reserve possibly cuts interest rates, the holdings of various gold ETFs are also expected to continue expanding.

Interestingly, the report specifically pointed out that central banks are now not only stockpiling gold through traditional channels but are also using investment methods like ETFs. In other words, both central banks and private investors are competing for limited physical gold, and this competition itself is pushing prices higher. Analysts believe that these large private investors are likely to continue holding their positions into 2026 and are unlikely to sell, which adds confidence to the price forecasts.

However, there are also more aggressive voices. A commodities strategist at a commercial bank believes that gold prices could even surge to $7,150 per ounce—significantly higher than current predictions. How high it can go ultimately depends on how much appetite central banks and institutional investors have.